The depreciation calculated using Modified Accelerated Cost Recovery System is primarily used for:
A)financial statement reporting by large companies.
B)income tax purposes.
C)financial statement reporting by small companies.
D)comparing the performance of two companies in the same industry.

Question

Quizplus · Accepted Answer

Modified Accelerated Cost Recovery System (MACRS) is a tax depreciation method used by the Internal Revenue Service (IRS) in the United States for income tax purposes. Therefore, the depreciation calculated using MACRS is primarily used for income tax purposes.

The Depreciation Calculated Using Modified Accelerated Cost Recovery System Is