The depreciation system used by many businesses for tax purposes is the
A) Accelerated Cost Recovery System.
B) Modified Adjusted Cost Recovery System.
C) Modified Actual Cost Recovery System.
D) Modified Accelerated Cost Recovery System.

Question

Quizplus · Accepted Answer

The commonly used depreciation system for tax purposes is the Modified Accelerated Cost Recovery System (MACRS), making option D the correct answer. The MACRS allows for faster depreciation of assets in the earlier years of use and slower depreciation in later years, which may result in larger tax savings for businesses. The other options listed are not correct. Option A is a specific type of MACRS, option B is not a real system, and option C does not exist.

The Depreciation System Used by Many Businesses for Tax Purposes