Which of the following statements is TRUE?
A)For most assets,MACRS approximates straight-line depreciation.
B)MACRS depreciates assets over a longer useful life than would be expected from the asset.
C)MACRS allows for greater depreciation expense in the later years of an asset's life,thus reducing the taxes a company will have to pay during those years.
D)The purpose of MACRS is to increase a company's income tax liability in the early years of a fixed asset's life.
E)None of the above

Question

Quizplus · Accepted Answer

MACRS (Modified Accelerated Cost Recovery System) is designed to accelerate depreciation, allowing for greater depreciation expense in the early years of an asset's life, which reduces a company's income tax liability during those years. This contradicts statements A, B, C, and D.

Which of the Following Statements Is TRUE