The modified accelerated cost recovery system (MACRS):
A) Does not allow partial year depreciation.
B) Is an outdated system that is no longer used by companies.
C) Is identical to units of production depreciation.
D) Is required for financial reporting.
E) Is included in the U.S. federal income tax rules for depreciating assets.

Question

Quizplus · Accepted Answer

The MACRS is included in the U.S. federal income tax rules for depreciating assets. It allows for partial year depreciation and is still currently used by companies. It is not identical to units of production depreciation and is not required for financial reporting.

The Modified Accelerated Cost Recovery System (MACRS)