Under the MACRS:
A) all assets are depreciated over 5 years.
B) depreciable percentages decline throughout the asset's class life.
C) straight-line depreciation percentages are doubled.
D) assets are assumed to be purchased and sold midyear.

Question

Quizplus · Accepted Answer

Under the MACRS, assets are assumed to be purchased and sold midyear, which affects the depreciation calculation. Choices A, B, and C are incorrect because not all assets are depreciated over 5 years, depreciable percentages do not necessarily decline throughout the asset's class life, and straight-line depreciation percentages are not doubled under MACRS.