contestada

A company which uses the MACRS system of depreciation:____.
a. can depreciate the cost of land, if it so desires.
b. cannot expense any of the cost of a new asset during the first year of the asset's life.
c. will have equal depreciation costs each year of an asset's life.
d. will have the highest depreciation in the first year.
e. will write off the entire cost of an asset over the asset's class life.

Respuesta :

Manetho

Answer:

e

Explanation:

Modified accelerated cost recovery system or MACRS system is used when it is allowed for business to recover cost of an asset which can detoriate over time. The depreciation in MACRS system decreases as the number of years increase.

Hence, the correct option should be (e) that is depreciation will write off the entire cost of an asset over the asset's class life.

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