Which Statement Is Not True of Straight-Line Depreciation Under MACRS

question 18

Multiple Choice

Which statement is not true of straight-line depreciation under MACRS?

• A)Each of the three accounting conventions (half-year, mid-month, and mid-quarter) are eligible for MACRS straight-line depreciation.
• B)MACRS straight-line depreciation is required for real property.
• C)MACRS straight-line depreciation must be used for either all or none of the assets of a given class placed in service during a given year.
• D)The class life of an asset is used as its recovery period.

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Definitions:

Uncollectible Accounts

Accounts receivable that a company does not expect to collect and writes off as bad debt expense.

Bankruptcy

A judicial process concerning an individual or entity that cannot fulfill their financial obligations.

Maturity Date

The final date by which a loan or other financial instrument must be paid back in full.

Service Charge

A fee collected for services provided, often added to a bill in sectors like banking, hospitality, and restaurants.