Which of the Following Is Not a Characteristic of MACRS

question 33

Multiple Choice

Which of the following is not a characteristic of MACRS for property other than real estate?

• A) MACRS uses shorter asset lives.
• B) MACRS increases taxable income in the early years of the asset's life.
• C) MACRS accelerates cost recovery.
• D) MACRS ignores salvage value.

Understand the implications of economies of scale and barriers to entry in creating and sustaining monopolies.

Differentiate the demand curve faced by monopolies from that faced by competitive firms.

Recognize the role of government restrictions, patents, and control over resources in creating monopolies.

Explain the impact of monopolistic decisions on economic efficiency and consumer prices.

---

Definitions:

GAAP

Generally Accepted Accounting Principles, a common set of accounting principles, standards, and procedures that companies must follow when they compile their financial statements in the U.S.

Fair Value

The price at which an asset would be exchanged between knowledgeable, willing parties in an arm's length transaction.

Full IFRS

The complete set of International Financial Reporting Standards that are globally accepted guidelines for preparing financial statements.

Private Company

A business entity owned by private individuals or entities and not traded publicly on the stock exchange, often characterized by closely held ownership.