Which of the following depreciation methods is used only on federal tax returns?
A)straight-line
B)double-declining balance
C)activity
D)Modified Accelerated Cost Recovery System (MACRS)

Question

Quizplus · Accepted Answer

MACRS is a depreciation method that is used specifically for federal tax purposes. It is a system that allows for quicker depreciation of assets than other methods, which can result in a larger tax deduction in the earlier years of an asset's use. Straight-line, double-declining balance, and activity methods are all commonly used for financial reporting and accounting purposes, but are not specific to federal tax regulations.

Which of the Following Depreciation Methods Is Used Only on Federal