Under the MACRS Depreciation Method, Automobiles and Equipment Are Depreciated

question 108

Multiple Choice

Under the MACRS depreciation method, automobiles and equipment are depreciated using the:

• A)straight-line method.
• B)150%-declining-balance method.
• C)double-declining-balance method.
• D)IRS units-of-production method.

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Definitions:

Accounts Receivable

Liabilities of customers towards a business for availing themselves of or receiving products or services not yet paid for.

Promissory Note

A promissory note is a financial instrument in which one party promises in writing to pay a determinate sum of money to the other, either at a fixed or determinable future time or on demand.

Key Parties

Critical or main individuals or groups involved in an event, decision, or transaction.

Maturity Value

The amount payable to an investor at the end of a debt instrument's life, including principal and interest.