A Major Objective of MACRS Is To

question 83

Multiple Choice

A major objective of MACRS is to:

• A) reduce the amount of the cost recovery deduction on businesses tax returns.
• B) assure that the amount of cost recovery for tax purposes will be the same as book depreciation.
• C) help companies achieve a faster write-off of their capital assets.
• D) require companies to use the actual economic lives of assets in calculating cost recovery for tax purposes.
• E) All of the above are major objectives.

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Definitions:

Compound Interest

Interest calculated on the initial principal as well as on the accumulated interest of previous periods of a deposit or loan.

Present Value

The value at present of future cash earnings or accumulations of money, determined by applying a pre-specified rate of financial return.

Current Liability

A company's debts or obligations that are due within one year.

Goods

Physical items that are produced, bought, or sold by businesses in the course of their operations.