The modified accelerated cost recovery system (MACRS):
A)Is included in the U.S.federal income tax rules for depreciating assets.
B)Is an outdated system that is no longer used by companies.
C)Is required for financial reporting.
D)Is identical to units of production depreciation.
E)Does not allow partial year depreciation.

Question

Quizplus · Accepted Answer

The modified accelerated cost recovery system (MACRS) is included in the U.S. federal income tax rules for depreciating assets. It allows for accelerated depreciation in the early years of an asset's life, which can result in larger tax deductions for companies.

The Modified Accelerated Cost Recovery System (MACRS)