Question

A major objective of MACRS is to: a.Ensure that the amount of cost recovery for tax purposes will be the same as book depreciation. b.Require companies to use the actual economic lives of assets in calculating cost recovery for tax purposes. c.Help companies achieve a faster write-off of their capital assets. d.Reduce the amount of the cost recovery deduction on businesses tax returns. e.All of these choices are major objectives.

Answer 1

Answer: Option (C)

Explanation:

M.A.R.C.S also abbreviated as Modified Accelerated Cost Recovery System is referred to as the present system of tax depreciation in US. This system is known to have capitalized the cost of the tangible property which is redeemed over the given period of time by the annual abatement for the depreciation.

The M.A.C.R.S also allows the individuals for the quicker abatement in 1st years of the tangible asset's life and thus further slows the depreciation.