Which of the following does MACRS depreciation provide to corporations?

Question

Quizplus · Accepted Answer

MACRS depreciation shortens the lives of assets for depreciation purposes, resulting in higher deductions in earlier years. This allows corporations to take larger tax deductions in the earlier years of asset ownership. Choices A and B are incorrect because MACRS does not increase total depreciation or lengthen the lives of assets. Choice D is incorrect because the full-year versus half-year convention is simply a choice of when in the year to start taking depreciation deductions, and is not unique to MACRS.

Which of the Following Does MACRS Depreciation Provide to Corporations