The Modified Accelerated Cost Recovery System (MACRS)was designed to encourage taxpayers to invest in business property by providing them with an accelerated depreciation method that lowered or postponed payment of income tax.

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This is a true statement. The MACRS method allows taxpayers to depreciate their business property over a shorter period of time, thus lowering their taxable income and postponing the payment of income tax. This serves as an incentive for businesses to invest in new property and equipment, which can stimulate economic growth.

The Modified Accelerated Cost Recovery System (MACRS)was Designed to Encourage