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Which of the following statements is true regarding depreciation and amortization? Goodwill cannot be amortized for...

Which of the following statements is true regarding depreciation and amortization?

Goodwill cannot be amortized for tax purposes.

Property used in a trade or business may not be depreciated if it has been used previously for personal purposes.

Salvage value is not considered for any of the depreciation methods allowed under MACRS.

Under MACRS, the straight-line method of depreciation is not allowed for personal property.
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Goodwill cannot be amortized for tax purposes.-Incorrect. Goodwill is tax deductible and amortizable over 15 years

Property used in a trade or business may not be depreciated if it has been used previously for personal purposes.-Incorrect. Depreciation is allowed if currently used in a trade or business

Salvage value is not considered for any of the depreciation methods allowed under MACRS.-Correct. Under MACRS, the asset is always depreciated down to zero

Under MACRS, the straight-line method of depreciation is not allowed for personal property-Incorrect . The straight-line method of depreciation is allowed

Hence correct answer is Salvage value is not considered for any of the depreciation methods allowed under MACRS.

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