Businesses Are Required to Use Modified Accelerated Cost Recovery System

question 147

True/False

Businesses are required to use Modified Accelerated Cost Recovery System (MACRS)for tax purposes.

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Definitions:

Current Year

The period of time from January 1 to December 31 of the present calendar year.

Depreciation Expense

The distribution of a tangible asset's cost throughout its lifespan.

Operating Activities

Business activities related directly to the production and delivery of goods and services.

Net Income

The remaining earnings of a company following the deduction of all expenses and taxes from its total revenue.