Under MACRS, Which One of the Following Is Not Considered

question 26

Multiple Choice

Under MACRS, which one of the following is not considered in determining depreciation for tax purposes?

• A) Cost of asset.
• B) Property recovery class.
• C) Half-year convention.
• D) Salvage (or residual) value.
• E) None of the above.

---

Definitions:

Compounded Semiannually

Interest calculation method where the interest is added to the principal sum every six months, thereby earning interest on interest.

Promissory Note

A financial instrument in which one party (the maker) promises in writing to pay a determinate sum of money to the other (the payee), either at a fixed or determinable future time or on demand.

Missing Interest Rate

The not specified or unidentified rate of interest in a financial context.

Real Compound Rate of Return

The annual rate of return on an investment, adjusted for inflation, that compounds over time.