According to the Modified Accelerated Cost Recovery System (MACRS), automobiles are to be placed with other assets that have a five-year class life. Assume Dallmeyer Digital bought a car in December 2004. What would be the last year in which it would take recognize depreciation on the vehicle?
A)2004
B)2009
C)2010
D)2011

Question

Quizplus · Accepted Answer

MACRS assigns automobiles a 5-year class life. Depreciation is taken over the class life of the asset. The last year of depreciation for the car purchased in December 2004 would be 2009 (5 years after 2004).

According to the Modified Accelerated Cost Recovery System (MACRS), Automobiles