For depreciable property other than real estate,MACRS is based upon:
A)The declining-balance method.
B)The straight-line method.
C)A 10-year recovery period.
D)The depreciation method and recovery period used by the company in its financial statements.

Question

Quizplus · Accepted Answer

MACRS stands for Modified Accelerated Cost Recovery System, which is a depreciation method used for depreciable property other than real estate. It is based on the declining-balance method, which allows for a faster deduction of depreciation in the early years of an asset's life and slower in the later years. MACRS also uses specific recovery periods based on the type of asset, ranging from 3 to 39 years.

For Depreciable Property Other Than Real Estate,MACRS Is Based Upon