In applying the statutory depreciation percentages from the MACRS tables, the cost of the asset must first be reduced by the prior year's depreciation.

Question

Quizplus · Accepted Answer

Under MACRS, the cost of the asset is not reduced by the prior year's depreciation. Instead, the full initial cost of the asset is used each year to calculate depreciation based on the system's fixed percentage rates and applicable recovery period.

In Applying the Statutory Depreciation Percentages from the MACRS Tables