Final answer:
The Modified Accelerated Cost Recovery System (MACRS) is a tax depreciation method allowing for the recovery of asset costs over a determined useful life, used for IRS purposes, not required for financial statements nor by the SEC.
Step-by-step explanation:
The Modified Accelerated Cost Recovery System (MACRS) is a depreciation method that is used for tax purposes. It allows businesses to recover the cost of certain property over a specified life by annual deductions. Under MACRS, there are specific depreciation schedules based on the type of asset. It's important to note that MACRS is not used for financial statement purposes, where other methods like straight-line or declining balance might be applied instead. MACRS does not allow for the full expense of an asset over a single year by default; although section 179 deductions or bonus depreciation might allow for a more accelerated depreciation under certain circumstances. Lastly, the Securities and Exchange Commission (SEC) does not require the use of MACRS; it's required by the Internal Revenue Service (IRS) for tax reporting.
The subject of this question is Business and the grade level is High School.
The modified accelerated cost recovery system (MACRS) is a depreciation method that is used for tax purposes.