The Modified Accelerated Cost Recovery System method of depreciation subtracts salvage value before calculating the annual depreciation expense.

Name: The Modified Accelerated Cost Recovery System method of depreciation subtracts salvage value before calculating the annual depreciation expense.
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Quizplus · Accepted Answer

The Modified Accelerated Cost Recovery System (MACRS) does not consider salvage value when calculating depreciation; it uses a predetermined schedule to allocate the cost of an asset over its useful life.

The Modified Accelerated Cost Recovery System Method of Depreciation Subtracts