💰 CPA Exam Prep

Depreciation under MACRS:

A Uses only straight-line

B Uses prescribed recovery periods and methods for tax purposes (5, 7, 15, 27.5, 39 years)

C Is identical to GAAP depreciation

D Is optional

✓ Correct Answer: Option B

MACRS provides statutory recovery periods and methods. Differs from book depreciation. §179 and bonus depreciation provide accelerated options.