The Modified Accelerated Cost Recovery System (MACRS)is Often Used by Companies

question 54

Multiple Choice

The Modified Accelerated Cost Recovery System (MACRS) is often used by companies to calculate depreciation expense for tax purposes. Which of the following is most correct?

• A)MACRS allows greater tax deductions related to depreciation earlier in the life of an asset than straight line depreciation does.
• B)MACRS uses the half-year convention in calculating depreciation expense.
• C)MACRS always depreciates the value of an asset down to zero (as opposed to a salvage value)if the asset is held long enough by the company.
• D)Even though depreciation is a non-cash expense, the use of MACRS can improve the profitability of a project as compared to the same project using straight line depreciation.
• E)All of the above are correct.

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Definitions:

Develop Vision

A strategic process of setting the future direction and goals of an organization or project.

Customer Needs

The recognized necessities, desires, or preferences of consumers that a company aims to fulfill with its products or services.

Corporate Philanthropy

The act of a corporation donating resources, including money, time, or products, to non-profit organizations or causes for the social good.

Employee Engagement

The degree to which workers are enthusiastic about their roles, dedicated to their employer, and willingly go above and beyond in their tasks.