The method of depreciation generally used for tax reporting purposes is
A) straight line.
B) sum-of-the-year's digits.
C) ACRS.
D) MACRS.

Question

Quizplus · Accepted Answer

MACRS (Modified Accelerated Cost Recovery System) is the method of depreciation generally used for tax reporting purposes. It allows for larger depreciation deductions in the early years of an asset's life, which can provide a significant tax benefit for businesses. Additionally, MACRS is an IRS-approved method and is commonly used by businesses for tax reporting purposes.

The Method of Depreciation Generally Used for Tax Reporting Purposes