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

Question

Quizplus · Accepted Answer

The half-year convention allows for half of the full year's depreciation to be taken in the first year, regardless of when the asset was purchased. Therefore, an asset purchased on January 25th would still qualify for six months of depreciation in the first year under the half-year convention.

The Half-Year Convention Permits a Company to Take Six Months