Question

The Modified Accelerated Cost Recovery System (MACRS) specifies which of the following depreciation methods for buildings?

A. {eq}150\% {/eq} declining-balance.
B. Double-declining-balance.
C. Straight line.
D. Buildings are not depreciable assets.

Answer 1

The Modified Accelerated Cost Recovery System (MACRS) specifies the straight line method for depreciating buildings.

Step-by-step explanation:

The Modified Accelerated Cost Recovery System (MACRS) specifies the straight line method for depreciating buildings. Under MACRS, buildings are considered depreciable assets and are assigned a recovery period over which they can be depreciated for tax purposes. The straight line method allows for equal depreciation deductions to be taken each year over the recovery period.