The MACRS Differs from Straight-Line Depreciation Computed for Financial Reporting

question 23

Multiple Choice

The MACRS differs from straight-line depreciation computed for financial reporting.In this respect, which of the following is not true?

• A)The MACRS uses longer asset lives.
• B)The MACRS ignores residual value.
• C)The MACRS decreases the income taxes payable in the early years of an asset's life.
• D)The MACRS accelerates cost recovery.

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