MACRS (modified accelerated cost recovery system) depreciation is equivalent to sum-of-the-years' digits depreciation.

Question

Quizplus · Accepted Answer

MACRS depreciation and sum-of-the-years' digits depreciation are similar in that they both allow for accelerated depreciation in the early years of an asset's life. However, MACRS uses different depreciation rates and a different method of calculating depreciation compared to the sum-of-the-years' digits method.

MACRS (Modified Accelerated Cost Recovery System) Depreciation Is Equivalent to Sum-Of-The-Years