A major objective of MACRS for tax depreciation is to
A) reduce the amount of depreciation deduction on business firms' tax returns.
B) assure that the amount of depreciation for tax and book purposes will be the same.
C) help companies achieve a faster write-off of their capital assets.
D) require companies to use the actual economic lives of assets in calculating tax depreciation.

Question

Quizplus · Accepted Answer

MACRS was created to help companies achieve a faster write-off of their capital assets for tax purposes. This is done by specifying the specific depreciation method and recovery period for each type of asset. As a result, companies are able to minimize their taxable income in the early years of an asset's life, when the asset is most productive, and increase their taxable income in later years when the asset is less productive.

A Major Objective of MACRS for Tax Depreciation Is to