Asked by DeAndra Kelly on Apr 29, 2024
Verified
For tax purposes, equipment is depreciated using the straight-line method under MACRS.
Straight-line Method
A method of allocating an asset's cost evenly over its useful life for the purposes of calculating depreciation.
MACRS
Modified Accelerated Cost Recovery System, a method of depreciation for tax purposes that allows faster depreciation in the initial years of an asset's life.
Equipment
Tangible assets used in operations, such as machinery or computers, that have a useful life beyond one accounting period.
- Acknowledge the role and deployment of the Modified Accelerated Cost Recovery System (MACRS) in calculating depreciation.
Verified Answer
Learning Objectives
- Acknowledge the role and deployment of the Modified Accelerated Cost Recovery System (MACRS) in calculating depreciation.
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