Which of the Following Statements Regarding Depreciation Is Incorrect

question 7

Multiple Choice

Which of the following statements regarding depreciation is incorrect?

• A) The depreciation tax shield adjusts with the level of inflation.
• B) The nominal amount of depreciation is fixed, thus the higher the rate of inflation, the lower the real value of the depreciation that you can claim.
• C) Tax law allows accelerated depreciation.
• D) The rate at which firms are permitted to depreciate equipment is known as the modified accelerated cost recovery system, or MACRS.

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Definitions:

Alice Paul

A prominent American suffragist and activist who played a leading role in the campaign for women’s suffrage, resulting in the passage of the 19th Amendment.

National Woman's Suffrage Association

An organization founded in 1869 that worked to secure women the right to vote in the United States, part of the broader women's suffrage movement.

Democracy

A system of government by the whole population or all the eligible members of a state, typically through elected representatives.

Jeannette Rankin

The first woman to hold federal office in the United States, serving as a member of Congress from Montana and known for her advocacy for women's suffrage and peace.