Under the modified accelerated cost recovery system, all of the following are true EXCEPT that:
A) assets are grouped into classes.
B) most real estate is depreciated using the straight-line method.
C) for a given class, the depreciation is computed using a declining-balance method.
D) MACRS can only be used for financial reporting purposes.

Question

Quizplus · Accepted Answer

MACRS can be used for both tax and financial reporting purposes, so option D is false. A is true as assets are indeed grouped into classes. B is also true as most real estate is depreciated using the straight-line method. C is true as for a given class, the depreciation is computed using a declining-balance method.

Under the Modified Accelerated Cost Recovery System, All of the Following