Which of the following statements is true concerning the modified accelerated cost recovery system (MACRS) for the recognition of depreciation expense?
A)7-year property will be depreciated more rapidly than 10-year property under the MACRS depreciation method.
B)Under MACRS more depreciation will be recorded in the second accounting period than in the first accounting period because of the half-year convention.
C)MACRS is used for the determination of depreciation expense that is reported on an income tax return.
D)All of these statements are true.

Question

Quizplus · Accepted Answer

7-year property will be depreciated over 7 years, and 10-year property will be depreciated over 10 years. Because of the half-year convention, MACRS depreciation will be greater in an asset's second year than it its first. MACRS is used for tax reporting, but not for financial statement reporting.

Which of the Following Statements Is True Concerning the Modified