A depreciation method that allocates depreciation of a plant asset based on the Tax Act of 1989 is the:

Question

Quizplus · Accepted Answer

The Modified Accelerated Cost Recovery System (MACRS) is the current tax depreciation system in the United States, and it was established under the Tax Reform Act of 1986, which was then applicable for assets placed in service after 1986. This system allows for accelerated depreciation of assets under the U.S. tax code, making option C the correct choice.

A Depreciation Method That Allocates Depreciation of a Plant Asset