The Modified Accelerated Cost Recovery System (MACRS) is a depreciation method which
A) is used for tax purposes.
B) must be used for financial statement purposes.
C) is required by the SEC.
D) expenses an asset over a single year because capital acquisitions must be expensed in the year purchased.

Question

Quizplus · Accepted Answer

MACRS is a method used for tax purposes to depreciate assets over a specified number of years. It is not required for financial statement purposes and is not mandated by the SEC. It also does not expense an asset over a single year, but rather spreads the cost over a specific recovery period.

The Modified Accelerated Cost Recovery System (MACRS) Is a Depreciation