Which of the following statements is true of the Modified Accelerated Cost Recovery System (MACRS)?
A) The system provides a variety of tax rate schedules established by the Internal Revenue Service.
B) The system allows a business to calculate an equal amount of depreciation expense for each year of service anticipated.
C) The system is used only by large business groups for financial statement reporting and tax reporting.
D) The system considers the trade-in value of an asset to calculate depreciation expense over the useful life of an asset.

Question

Quizplus · Accepted Answer

MACRS is a method of depreciation established by the IRS for tax purposes, offering different depreciation schedules for various types of assets. It does not calculate equal annual depreciation (like straight-line depreciation), is not limited to large businesses, nor does it consider trade-in values for depreciation calculations.

Which of the Following Statements Is True of the Modified