Which of the following statements about MACRS is not correct?
A)MACRS is the only accelerated depreciation method that may be used on newly acquired assets for federal income tax purposes.
B)The method permits "depreciating" the asset to a tax basis of $0 over a specified recovery period.
C)If a company uses MACRS in its income tax returns,it also must use MACRS in its financial statements.
D)Most businesses would benefit from using MACRS rather than straight-line depreciation in their income tax returns.

Question

Quizplus · Accepted Answer

While MACRS is a popular choice for accelerated depreciation for tax purposes, it is not required to be used for financial statement purposes. Companies may choose to use straight-line depreciation or other methods in their financial statements.

Which of the Following Statements About MACRS Is Not Correct