Asked by Kenny Wayne on May 22, 2024
Verified
Using MACRS rates for a 15 and 20-year property, what is the percentage for the depreciable rate?
A) 200 percent
B) 150 percent
C) 125 percent
D) 100 percent
Depreciable Rate
The rate at which an asset loses its value over time for accounting and tax purposes, determining its annual depreciation.
MACRS Rates
MACRS Rates refer to the depreciation rates established under the Modified Accelerated Cost Recovery System, allowing for faster depreciation of assets for tax purposes.
Property
Assets owned by an individual or business, which can include physical items like real estate and equipment, or intangible items like intellectual property.
- Compute depreciation costs utilizing the Modified Accelerated Cost Recovery System (MACRS) for diverse asset categories.
Verified Answer
EC
Erika CardosoMay 26, 2024
Final Answer :
B
Explanation :
The Modified Accelerated Cost Recovery System (MACRS) uses a 150 percent declining balance method for 15 and 20-year property, which allows for a faster depreciation rate initially that slows down over time.
Learning Objectives
- Compute depreciation costs utilizing the Modified Accelerated Cost Recovery System (MACRS) for diverse asset categories.