Which of the Following Statements Concerning MACRS Depreciation Is True

question 17

Multiple Choice

Which of the following statements concerning MACRS depreciation is true?

• A) MACRS depreciation for the year in which an asset is placed in service or sold is based on the number of days the asset was used in the year.
• B) MACRS depreciation for buildings is not accelerated but is computed using the straight-line method.
• C) The recovery period under MACRS is based on the estimated useful life of the particular asset under consideration.
• D) Salvage value is taken into account in computing MACRS depreciation.

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Definitions:

Pluralistic Ignorance

A social psychological phenomenon where a majority of group members privately reject a norm, but assume incorrectly that most others accept it.

False Uniqueness Effect

The cognitive bias causing individuals to underestimate the commonality of their desirable traits or behaviors, believing they are more unique than they actually are.

Ethical Issues

Situations or problems requiring individuals or organizations to choose between actions that must be evaluated as right or wrong based on moral principles.

Unintended Negative Consequences

Outcomes that are not foreseen or intended and have a harmful or undesirable effect on individuals or communities.