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.

💡 Why is B) the correct answer?

The correct answer to the question "Depreciation under MACRS:" is Option B: Uses prescribed recovery periods and methods for tax purposes (5, 7, 15, 27.5, 39 years).

The other options — A) Uses only straight-line, C) Is identical to GAAP depreciation, D) Is optional — are incorrect for this CPA Exam Prep question. As explained above: MACRS provides statutory recovery periods and methods. Differs from book depreciation. §179 and bonus depreciation provide accelerated options.

📚 About This CPA Exam Prep Practice Question

This 2-level CPA Exam Prep question from the Regulation (REG) topic is part of BrainForge Quiz's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.

How to use this page: Read the question above, consider all four options (A through D), then check the highlighted correct answer and explanation. For active timed practice, start a free CPA Exam Prep practice test or use flashcards for spaced repetition review.

Practice CPA Exam Prep Quizzes → Browse All Questions Study Flashcards

Depreciation under MACRS:

✓ Correct Answer: Option B

📚 About This CPA Exam Prep Practice Question

Related CPA Exam Prep Questions