In Applying the Statutory Depreciation Percentages from the MACRS Tables

question 30

True/False

In applying the statutory depreciation percentages from the MACRS tables, the cost of the asset must first be reduced by the prior year's depreciation.

Determine the profitability of accepting special orders, including the consideration of capacity constraints.

Recognize relevant costs and revenues in equipment replacement decisions.

Understand the basic concepts and types of leases (operating, capital, sales-type, direct financing) and their characteristics according to GAAP.

Apply knowledge of lease accounting to determine the appropriate classification of a lease on the lessee's and lessor’s books.