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.

Comprehend the concept of period costs and how they relate to the manufacturing process.

Distinguish between direct and indirect labor within the manufacturing environment.

Understand the significance of work in process inventory and its impact on manufacturing financials.

Interpret the relationship between factory overhead costs and the manufacturing process.

---

Definitions:

Infraorbital Foramen

An opening located below the orbit (eye socket) on the skull through which nerves and blood vessels pass.

Foramen Magnum

The large opening at the base of the skull through which the spinal cord passes to connect with the brain.

Vertebral Arteries

Arteries that supply blood to the upper spine, brainstem, cerebellum, and posterior part of the brain.

Sella Turcica

A saddle-shaped depression in the sphenoid bone of the human skull, where the pituitary gland is situated.