Which of the Following Is Not Part of the Modified

question 26

Multiple Choice

Which of the following is not part of the modified accelerated cost recovery system (MACRS) ?

• A)Salvage value is ignored.
• B)Used property can use MACRS.
• C)Straight-line depreciation is allowed.
• D)Sum-of-the-years digits depreciation is allowed.
• E)All of the above are part of MACRS.

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Definitions:

Fixed Costs

Costs that do not vary with the level of production or business activity, such as rent, salaries, and insurance.

Variable Costs

Costs that change in proportion to the level of production or business activity.

Shut Down

The process of ceasing operations, often temporarily, as a strategic or economic decision by a business.

Short Run

A period in economics where at least one input is fixed and cannot be changed.