With regard to depreciation computations made under the
general MACRS method, the half-year convention provides that

(a) The requirement is to determine the correct statement
regarding the half-year convention under the general
MACRS method. Under the half-year convention that generally
applies to depreciable personal property, one-half of the first
year’s depreciation is allowed in the year in which the property is
placed in service, regardless of when the property is placed in
service during the year, and a half-year’s depreciation is allowed
for the year in which the property is disposed of, regardless of
when the property is disposed of during the year. Answer (b) is
incorrect because allowing one-half month’s depreciation for the
month that property is placed in service or disposed of is known
as the “midmonth convention.”