A depreciation method that allocates depreciation of a plant asset based on the Tax Act of 1989 is the:

A) straight-line method.
B) units-of-production method.
C) modified accelerated cost recovery method.
D) double declining-balance method.

Question

Zybrea Knight · Accepted Answer

Final Answer : C, Explanation :  The Modified Accelerated Cost Recovery System (MACRS) is the current tax depreciation system in the United States, and it was established under the Tax Reform Act of 1986, which was then applicable for assets placed in service after 1986. This system allows for accelerated depreciation of assets under the U.S. tax code, making option C the correct choice.

A depreciation method that allocates depreciation of a plant asset based on the Tax Act of 1989 is the:

A) straight-line method.
B) units-of-production method.
C) modified accelerated cost recovery method.
D) double declining-balance method.

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Learning Objectives

Related questions

A depreciation method that allocates depreciation of a plant asset based on the Tax Act of 1989 is the:A) straight-line method.B) units-of-production method.C) modified accelerated cost recovery method.D) double declining-balance method.

Definitions

Learning Objectives

Learning Objectives

Related questions

A depreciation method that allocates depreciation of a plant asset based on the Tax Act of 1989 is the:

A) straight-line method.
B) units-of-production method.
C) modified accelerated cost recovery method.
D) double declining-balance method.