A Company That Uses the MACRS System of Depreciation

question 52

Multiple Choice

A company that uses the MACRS system of depreciation

• A)cannot expense any of the cost of a new asset during the first year of the asset's life.
• B)will expense the entire cost of an asset over the asset's class life.
• C)will fully depreciate most assets over a 3-year period.
• D)will forgo any benefits normally derived from the depreciation tax shield.
• E)will have equal depreciation costs each year of an asset's life.

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Definitions:

Core Nations

Countries that dominate the global economy and international trade, possessing advanced technological infrastructures and high levels of productivity.

Semiperipheral Nations

Countries in the world-system that are intermediate, neither fully developed nor least developed, often marked by moderate levels of industrialization and average per capita incomes.

Peripheral Nations

Countries that are less economically developed and often depend on core nations for capital and are exploited for labor and raw materials.

Globalization

Increased economic, political, and social interconnectedness and interdependence among societies in the world.