The Modified Accelerated Cost Recovery System MACRS is a dep

The Modified Accelerated Cost Recovery System (MACRS) is a depreciation method which is used for tax purposes. must be used for financial statement purposes. is required by the SEC expenses an asset over a single year because capital acquisitions must be expensed in the year purchased.

Solution

Option A (is used for tax purposes)

MACRS is the current system used for income tax purposes to claim deduction of depreciation on depreciable assets. Compared to Straight-Line method of depreciation MACRS calls for higher deduction in early years and lower deduction in later years