A company which uses the MACRS system of depreciation:
A) will have equal depreciation costs each year of an asset's life.
B) will expense the cost of nonresidential real estate over a period of 7 years.
C) can depreciate the cost of land, if it so desires.
D) will write off the entire cost of an asset over the asset's class life.
E) cannot expense any of the cost of a new asset during the first year of the asset's lifE.

Question

Quizplus · Accepted Answer

Under the MACRS system, the entire cost of an asset is written off over the asset's class life, which is determined by the IRS.

A Company Which Uses the MACRS System of Depreciation