Hoopin Oil Incorporated was allowed to deduct $5.3 million of intangible drilling and development costs on 2021's tax return. Which of the following statements is false?


a. The deduction is a tax preference for Hoopin.

b. The deduction minimizes Hoopin's after-tax cost of locating and preparing oil wells for production.

c. Hoopin was allowed to deduct the costs only because they did not result in any long-term economic benefit.

d. None of these choices are false.