The net book value of equipment will:
A)remain constant over the life of the equipment.
B)vary in response to changes in the market value.
C)decrease at a constant rate when MACRS depreciation is used.
D)increase over the taxable life of an asset.
E)decrease slower under straight-line depreciation than under MACRS.

Question

Quizplus · Accepted Answer

Under straight-line depreciation, the asset's value decreases evenly over its useful life, whereas MACRS (Modified Accelerated Cost Recovery System) allows for accelerated depreciation, leading to a faster decrease in the asset's book value initially.

The Net Book Value of Equipment Will