In MACRS depreciation, which MACRS life asset has the greater proportion of depreciation in the first year?
A) 3-year MACRS asset
B) 5-year MACRS asset
C) 7-year MACRS asset

Question

Quizplus · Accepted Answer

A 3-year MACRS asset has the greatest proportion of depreciation in the first year compared to 5-year and 7-year MACRS assets, as the depreciation rate is higher for assets with shorter recovery periods under the MACRS system.

In MACRS Depreciation, Which MACRS Life Asset Has the Greater