Which of the following statements concerning MACRS depreciation is true?
A) MACRS depreciation for the year in which an asset is placed in service or sold is based on the number of days the asset was used in the year.
B) MACRS depreciation for buildings is not accelerated but is computed using the straight-line method.
C) The recovery period under MACRS is based on the estimated useful life of the particular asset under consideration.
D) Salvage value is taken into account in computing MACRS depreciation.

Question

Quizplus · Accepted Answer

MACRS (Modified Accelerated Cost Recovery System) depreciation for buildings is indeed not accelerated and is computed using the straight-line method. This is in contrast to many other types of property under MACRS, which are depreciated using accelerated methods.

Which of the Following Statements Concerning MACRS Depreciation Is True