For Real Property Placed in Service After 1986,depreciation Under the MACRS

question 22

Multiple Choice

For real property placed in service after 1986,depreciation under the MACRS system is calculated using the

• A)straight-line method and a half-year convention in the year of acquisition and in the year of disposition.
• B)straight-line method and a mid-month convention in the year of acquisition and in the year of disposition.
• C)200% DB method and a mid-month convention in the year of acquisition and in the year of disposition.
• D)200% DB method and a half-year convention in the year of acquisition and in the year of disposition.

---

Definitions:

Industry's Output

The total production of goods or services generated by all firms operating within a specific industry.

Decreasing-Cost Industry

An industry characterized by a downward-sloping long-run supply curve, indicating lowering costs as industry output increases.

Increasing-Cost Industry

An industry in which production costs increase as output expands, often due to scarce resources or rising input prices.

Industry Expands

The process of a sector in the economy growing due to an increase in demand, production, and often, employment.