A major objective of MACRS is to:
A)Reduce the amount of the cost recovery deduction on businesses tax returns.
B)Ensure that the amount of cost recovery for tax purposes will be the same as book depreciation.
C)Help companies achieve a faster write-off of their capital assets.
D)Require companies to use the actual economic lives of assets in calculating cost recovery for tax purposes.
E)All of these are major objectives.

Question

Quizplus · Accepted Answer

The major objective of MACRS is to help companies achieve a faster write-off of their capital assets. This is done by providing a predetermined schedule of depreciation allowances based on asset class and useful life. The other choices are not objectives of MACRS.

A Major Objective of MACRS Is To