(1) A reasonable

allowance for the exhaustion, wear and tear, and obsolescence of property arising out of its use or employment in the trade or business is allowed as a depreciation deduction.

(2) The basis upon which depreciation is to be computed shall be the same basis as used for federal income tax purposes.

(3) The method of depreciation used and the amount of the depreciation must be the same as that reported for federal income tax purposes.

History: Sec. 15-31-501, MCA; IMP, Sec. 15-31-114, MCA; Eff. 12/31/72; AMD, 1982 MAR p. 104, Eff. 1/29/82; AMD, 1988 MAR p. 1982, Eff. 9/8/88.