Which of the Following Is Not a Characteristic of MACRS

question 73

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 decreases taxable income in the early years of the asset's life.

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Definitions:

Long-Term Securities

Financial instruments or investments that are meant to be held or mature over a period longer than one year.

Capital Markets

Markets where individuals and institutions trade financial securities, including stocks and bonds, over long periods.

Maturities

The specific dates on which the principal or nominal amounts of financial instruments like bonds or loans are due to be paid to holders.

Short-Term Securities

Financial instruments, such as Treasury bills or commercial paper, that have maturities of one year or less.