In applying the statutory rates from the MACRS tables, the cost of the asset must first be reduced by the prior year's depreciation.

Name: In applying the statutory rates from the MACRS tables, the cost of the asset must first be reduced by the prior year's depreciation.
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The Modified Accelerated Cost Recovery System (MACRS) does not require reducing the asset's cost by prior year's depreciation when applying statutory rates. Depreciation is calculated on the original cost basis.

In Applying the Statutory Rates from the MACRS Tables, the Cost