Under MACRS, which of the following must be considered in determining depreciation? Cost of asset Property...
Under MACRS, which of the following must be considered in determining depreciation?
| Cost of asset |
| Property recovery class |
| Half-year convention |
| All of these answers are correct |
Homework Answers
In MACRS depreciation formula is
(Cost -Depreciation in previous years) * (1/useful life) * A * Depreciation convention
Where as 'A' is 100%, 150%, 200%
Period to be considered varies under MACRS, with respect to the class of the asset.(ex- Automobiles - 5 yrs , Office furniture 7 yrs etc)
So, Cost of Asset, property recovery class and half-year convention are to be considered in depreciation under Modified Accelerated Cost recovery system (MACRS)
All of these answers are correct.
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*THIS IS ONE QUESTION ONLY*
Basic depreciation concepts
Cost or factor depletion is based on _____________ level, not
time as used in depreciation.
The remaining, undepreciated amount of an investment is known as
its ____________.
Percentage depletion is determined as a stated percentage
times___________.
The depreciable life of an asset is also known as the
_____________.
MACRS depreciation rates always write-off the asset's value to
_____________.
In the straight line method of depreciation, the depreciation
charge in the final year...
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