Which One of the Following Statements Is Not True

question 61

Multiple Choice

Which one of the following statements is not true?

• A)Straight-line depreciation may be used instead of MACRS for income tax reporting.
• B)If MACRS is used for tax purposes, it must be used for book purposes.
• C)Salvage value is not considered when the MACRS system is in use.
• D)Economic lives may be different from MACRS lives.

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Definitions:

Concentration Ratio

A measure used to assess the degree of market concentration, quantifying the market share held by the largest firms within an industry.

Equal Percentage

A rate or proportion where the same fraction or share applies uniformly across different scenarios or entities.

Pure Monopoly

A market structure characterized by a single seller selling a unique product in the market, resulting in significant control over pricing and market supply.

Monopolistic Competition

A market structure where many companies sell products that are similar but not identical, allowing them some power to set prices.