Although firms can elect to use straight-line depreciation, the MACRS depreciation schedules have superseded other depreciation methods for tax purposes.

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MACRS stands for Modified Accelerated Cost Recovery System, and it is the depreciation method allowed by the IRS for tax purposes. While firms can still choose to use straight-line depreciation for financial reporting purposes, MACRS is the preferred method for tax purposes.

Although Firms Can Elect to Use Straight-Line Depreciation, the MACRS