Under the Modified Accelerated Cost Recovery System (MACRS), the _____ is ignored.
A) life of an asset
B) trade-in value of an asset
C) cost of an asset
D) depreciation rate of an asset

Question

Under the Modified Accelerated Cost Recovery System (MACRS), the _____ is ignored.
A) life of an asset
B) trade-in value of an asset
C) cost of an asset
D) depreciation rate of an asset
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Quizplus · Accepted Answer

Under the Modified Accelerated Cost Recovery System (MACRS), the salvage value or trade-in value of an asset is ignored when calculating depreciation. The system focuses on the cost, life, and depreciation rate of the asset to determine the depreciation expense.