A major objective of MACRS is to:
A) reduce the amount of the cost recovery deduction on businesses tax returns.
B) assure that the amount of cost recovery for tax purposes will be the same as book depreciation.
C) help companies achieve a faster write-off of their capital assets.
D) require companies to use the actual economic lives of assets in calculating cost recovery for tax purposes.
E) All of the above are major objectives.

Question

Quizplus · Accepted Answer

MACRS was designed to help companies achieve a faster write-off of their capital assets. This was done by creating a set of depreciation schedules that allow for accelerated cost recovery deductions. Additionally, MACRS is meant to simplify the tax code by providing clear guidelines for calculating depreciation, which can help to reduce the administrative burden on taxpayers.

A Major Objective of MACRS Is To