The Depreciation Method Currently Allowed Under US Tax Law Governing

question 59

Multiple Choice

The depreciation method currently allowed under US tax law governing the accelerated write-off of property under various lifetime classifications is called _____ depreciation.

• A)sum-of-years digits
• B)curvilinear
• C)straight-line
• D)FIFO
• E)MACRS

---

Definitions:

Tax Rate

The proportionality of income subject to tax for either a person or a business.

Discount Rate

This refers to the interest rate applied for computing the present value of forthcoming cash flows in the context of discounted cash flow analysis.

Present Value

The current valuation of future monetary sums or cash flow streams, using a given return rate for discounting.

Capital Cost Allowance (CCA)

A taxable expense in Canada that a business can claim for the depreciation of tangible property.