Which of the Following Statements About the Modified Accelerated Cost

question 53

Multiple Choice

Which of the following statements about the Modified Accelerated Cost Recovery System (MACRS) is correct?

• A)It is similar to the units-of-production depreciation method.
• B)It is applied using longer asset lives than the estimated useful lives required by GAAP.
• C)It provides a short-term tax benefit because of the higher depreciation expense reported in the early years of an asset's life.
• D)It is acceptable for use when preparing financial statements.

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Definitions:

Gain-framed Appeal

Persuasive communication emphasizing the positive benefits or outcomes of adopting a certain behavior or stance.

Framing

The way information is presented or expressed to influence perception and decision-making.

Positive Terms

Words or expressions associated with good, beneficial, or desirable qualities, often conveying optimism or favorable outcomes.

Loss-framed Appeal

A persuasive message that emphasizes the potential losses or negative outcomes that can result from failing to adopt a behavior or stance.