When developing a pro forma income statement,depreciation,unlike sales,tends to ________ each year with the Modified Asset Cost Recovery System (MACRS).
A)go up
B)remain the same
C)increase exponentially
D)go down

Question

Quizplus · Accepted Answer

Depreciation tends to go down each year with MACRS as it is an accelerated depreciation method that allows for more depreciation in earlier years and less in later years.

When Developing a Pro Forma Income Statement,depreciation,unlike Sales,tends to ________