Which of the Following Statements About MACRS Is Not Correct

question 121

Multiple Choice

Which of the following statements about MACRS is not correct?

• A)MACRS is the only accelerated depreciation method that may be used on newly acquired assets for federal income tax purposes.
• B)The method permits "depreciating" the asset to a tax basis of $0 over a specified recovery period.
• C)If a company uses MACRS in its income tax returns,it also must use MACRS in its financial statements.
• D)Most businesses would benefit from using MACRS rather than straight-line depreciation in their income tax returns.

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Definitions:

Defender

In a business context, a defender is a type of strategy or stance where an organization focuses on defending its market position by improving operational efficiency and product quality, rather than seeking new markets.

Prospector

In a business context, this term refers to companies that focus on innovation, seeking out new markets and opportunities, and being among the first to bring new products or services to market.

Operational Planning

The process of developing detailed, short-term plans that guide an organization's resources towards achieving strategic objectives.

Strategic Planning

Strategic planning is the process of defining an organization's direction and making decisions on allocating its resources to pursue this strategy, including its capital and people.