t/f Modified Accelerated Cost Recovery System
Modified Accelerated Cost Recovery System is the only depreciation method used in computing corporate income tax liabilities.
Homework Answers
The correct answer is True.
Explanation: A special depreciation method used only for income tax purposes. Assets are grouped into classes. For a given class, depreciation is computed by the double-declining balance method, the 150% declining balance method or the straight-line method for most real estate.
The IRS introduced the modified accelerated cost recovery system, a depreciation method used for accounting purposes, in 1986. MACRS is only used for business assets that your company bought after 1986.
Which of the statements below is FALSE? A) Under the modified accelerated cost recovery system (MACRS)...
Which of the statements below is FALSE? A) Under the modified accelerated cost recovery system (MACRS) system of depreciation, the government classifies all assets into groups that are assigned specific "lives" for the purpose of depreciation. B) Under the modified accelerated cost recovery system (MACRS) system of depreciation, once the assigned class life is established, an adjustable percentage of the cost is expensed each year as depreciation. C) Under the modified accelerated cost recovery system (MACRS) system of depreciation, it...
automobiles generally have 3- year cost recovery period under the modified accelerated cost recovery system (MACRS)....
automobiles generally have 3- year cost recovery period under the modified accelerated cost recovery system (MACRS). true or false
True or False: All else equal, the use of the modified accelerated cost recovery system (MACRS)...
True or False: All else equal, the use of the modified accelerated cost recovery system (MACRS) versus straight-line depreciation increases the net present value of a capital budget analysis.
Which of the statements below is FALSE? Under the modified accelerated cost recovery system (MACRS) system...
Which of the statements below is FALSE? Under the modified accelerated cost recovery system (MACRS) system of depreciation, once the assigned class life is established, an adjustable percentage of the cost is expensed each year as depreciation. Under the modified accelerated cost recovery system (MACRS) system of depreciation, the government classifies all assets into groups that are assigned specific "lives" for the purpose of depreciation. Depreciation or "expired" costs each year do not reflect cash flows because the actual purchase...
What is a modified accelerated cost recovery system (MACRS)? Speculate as to why this system is...
What is a modified accelerated cost recovery system (MACRS)? Speculate as to why this system is no required for fax purposes.
MACRS, or the Modified Accelerated Cost Recovery System is the current tax depreciation system in the...
MACRS, or the Modified Accelerated Cost Recovery System is the current tax depreciation system in the US. It assigns a schedule for yearly depreciation, depending on the type of property. Assume you are considering the purchase of a new $1756 laptop. Computers are to be depreciated as follows: 20% in year 1, 32% in year 2, 19.2% in year 3, 11.52% in years 4 and 5, and the final 5.76% in year 6. How much will your computer have been...
An in-place machine with B = $160,000 was depreciated by using Modified Accelerated Cost Recovery System...
An in-place machine with B = $160,000 was depreciated by using Modified Accelerated Cost Recovery System (MACRS) over a 3-year period. The machine was sold for $60,000 at the end of year 2 when the company decided to import the item that required the use of the machine. In year 2, gross income (GI) = $1 million and operating expenses (OE) = $500,000. Determine the tax liability in year 2 if Te = 35%. The tax liability in year 2...
Problem 8-3 Modified Accelerated Cost Recovery System (MACRS), Election to Expense (Section 179) (LO 8.2, LO...
Problem 8-3 Modified Accelerated Cost Recovery System (MACRS), Election to Expense (Section 179) (LO 8.2, LO 8.3) Mike purchases a new heavy-duty truck (5-year class recovery property) for his delivery service on April 30, 2018. No other assets were purchased during the year. The truck is not considered a passenger automobile for purposes of the listed property and luxury automobile limitations. The truck has a depreciable basis of $39,000 and an estimated useful life of 5 years. Assume half-year convention...
roblem 8-3 Modified Accelerated Cost Recovery System (MACRS), Election to Expense (Section 179) (LO 8.2, 8.3)...
roblem 8-3 Modified Accelerated Cost Recovery System (MACRS), Election to Expense (Section 179) (LO 8.2, 8.3) Mike purchases a new heavy-duty truck (5-year class recovery property) for his delivery service on March 30, 2019. No other assets were purchased during the year. The truck is not considered a passenger automobile for purposes of the listed property and luxury automobile limitations. The truck has a depreciable basis of $42,000 and an estimated useful life of 5 years. Assume half-year convention for...
Problem 8-9 (Algorithmic) Modified Accelerated Cost Recovery System (MACRS), Listed Property (LO 8.2, 8.4) On February...
Problem 8-9 (Algorithmic) Modified Accelerated Cost Recovery System (MACRS), Listed Property (LO 8.2, 8.4) On February 2, 2018, Alexandra purchases a personal computer for her home. The computer cost $6,280. Alexandra uses the computer 80 percent of the time in her accounting business, and the remaining 20 percent of the time for various personal uses. Calculate Alexandra's maximum depreciation deduction for 2018 for the computer, assuming half-year convention and she does not make the election to expense or take bonus...
Problem 8-3 Modified Accelerated Cost Recovery System (MACRS), Election to Expense (Section 179) (LO 8.2, LO 8.3) Mike purchases a new heavy-duty truck (5-year class recovery property) for his delivery service on April 30, 2018. No other assets were purchased during the year. The truck is not considered a passenger automobile for purposes of the listed property and luxury automobile limitations. The truck has a depreciable basis of $39,000 and an estimated useful life of 5 years. Assume half-year convention...
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