Which of these statements about depreciation is true? a. MACRS depreciation incorporates only declining balance depreciation in its computations for all assets. b. Straight line depreciation is actually not straight at all, but is based on an exponential decay function. c. For twenty-first century assets in the U.S., MACRS depreciation and tax depreciation have the same meaning. d. Gains tax is paid on any revenue that exceeds the year's depreciation allowance.
Which of these statements about depreciation is true? a. MACRS depreciation incorporates only declining balance depreciation in its computations for all assets. b. Straight line depreciation is actually not straight at all, but is based on an exponential decay function. c. For twenty-first century assets in the U.S., MACRS depreciation and tax depreciation have the same meaning. d. Gains tax is paid on any revenue that exceeds the year's depreciation allowance.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Which of these statements about
a. MACRS depreciation incorporates only declining balance depreciation in its
computations for all assets.
b. Straight line depreciation is actually not straight at all, but is based on an
exponential decay function.
c. For twenty-first century assets in the U.S., MACRS depreciation and tax
depreciation have the same meaning.
d. Gains tax is paid on any revenue that exceeds the year's depreciation allowance.
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