Which of the following depreciation methods is used by most corporations to calculate depreciation expense for their tax returns?
A)MACRS
B)Straight-line
C)Units-of-production
D)Double-declining balance

Question

Quizplus · Accepted Answer

Most corporations use the IRS-approved Modified Accelerated Cost Recovery System (MACRS)to calculate depreciation expense for their tax returns.MACRS is similar to the declining-balance method and is applied over relatively short asset lives set by the IRS to yield high tax deductions for depreciation expense in the early years.

Which of the Following Depreciation Methods Is Used by Most