Based on a five year MACRS depreciation schedule, depreciation will occur over a ____ period.
A)6 year period
B)5 year period
C)4.5 year period
D)7 year period

Question

Quizplus · Accepted Answer

Under the Modified Accelerated Cost Recovery System (MACRS), assets categorized in a five-year schedule actually depreciate over six years. This is because MACRS allows for a half-year convention, counting only a half year's worth of depreciation in both the first and last year of the schedule.

Based on a Five Year MACRS Depreciation Schedule, Depreciation Will