The half-year convention allows us to take six months depreciation during the first year of an asset's life even if the asset was purchased on 25th January.

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The half-year convention allows us to take six months depreciation during the first year of an asset's life regardless of when the asset was purchased. Therefore, even if the asset was purchased on 25th January, we can still take half-year depreciation for the entire first year.

The Half-Year Convention Allows Us to Take Six Months Depreciation