Final answer:
The Straight-Line Method is commonly used in accounting for vehicle depreciation due to its simplicity, but for tax purposes, the Modified Accelerated Cost Recovery System, a form of Double-Declining Balance Method, would typically be used following IRS guidelines. Option a
Step-by-step explanation:
The depreciation method commonly used for cars and other similar assets is known as the Modified Accelerated Cost Recovery System (MACRS), which is not explicitly listed in the options provided.
However, if we consider the general methods commonly discussed in accounting practices, the Straight-Line Method is typically used for vehicles. This method spreads the cost of the asset evenly over its useful life.
For tax purposes, however, the IRS provides specific guidelines on how depreciation for vehicles should be calculated, which varies from the general accounting methods. In reality, Mary would need to follow these tax-specific guidelines, which could be considered a modified form of the Double-Declining Balance Method. It's essential to consult current tax laws or a tax professional to determine the exact method to use for a vehicle placed in service.
In this case, since MACRS is not provided as an option, the closest alternative would be the Double-Declining Balance Method for a more accelerated depreciation, assuming the context is U.S. tax depreciation. Option a