Question

The depreciable value of an asset, under MACRS, is the ________.A) current costB) current cost minus salvage valueC) the original cost plus installationD) the original cost plus installation costs, minus salvage value

Answer 1

Answer: The correct answer is : C) the original cost plus installation

Explanation: MACRS (The Modified Accelerated Cost Recovery System) is a depreciation method used for tax purposes. The MACRS depreciation method requires use of the half-year convention. Assets are assumed to be acquired in the middle of the year and only one-half of the first year's depreciation is recovered in the first year.