Which Is Not Depreciable Under the Modified Accelerated Cost Recovery

question 47

Multiple Choice

Which is not depreciable under the Modified Accelerated Cost Recovery System (MACRS) ?

• A)New buildings
• B)Used buildings
• C)Used machinery
• D)Patents

---

Definitions:

Depreciation Expense

An accounting method of allocating the cost of a tangible asset over its useful life.

LIFO

"Last In, First Out", an inventory costing method where the most recently produced or acquired items are recorded as sold first.

FIFO

An inventory valuation method where the first items placed into inventory are the first ones sold; stands for First-In, First-Out.

Inventory Costing

The method used to assign costs to inventory, affecting the cost of goods sold and ending inventory valuations.