To compute depreciation using MACRS on an asset purchased today, you need to know
I.the asset's depreciable basis.
II.the recovery period of the asset.
III.the first and last year convention that applies to the asset's class.
IV.whether you want to minimize or maximize the current year's depreciation.

A)Only statement II is correct.
B)Statements I and II are correct.
C)Statements I, III, and IV are correct.
D)Statements II and III are correct.
E)Statements I, II, III, and IV are correct.

Question

To compute depreciation using MACRS on an asset purchased today, you need to know
I.the asset's depreciable basis.
II.the recovery period of the asset.
III.the first and last year convention that applies to the asset's class.
IV.whether you want to minimize or maximize the current year's depreciation.
​
A)Only statement II is correct.
B)Statements I and II are correct.
C)Statements I, III, and IV are correct.
D)Statements II and III are correct.
E)Statements I, II, III, and IV are correct.

Quizplus · Accepted Answer

To compute depreciation using MACRS, you need to know the asset's depreciable basis, the recovery period, the applicable first and last year convention, and your preference for minimizing or maximizing current year's depreciation.

To Compute Depreciation Using MACRS on an Asset Purchased Today