Ignoring Bonus Depreciation, the Net Book Value of Equipment Will

Multiple Choice

Ignoring bonus depreciation, the net book value of equipment will:

A) remain constant over the life of the equipment.
B) vary in response to changes in the market value of that equipment.
C) decrease at a constant rate when MACRS depreciation is used.
D) increase over the taxable life of an asset.
E) decrease slower under straight-line depreciation than under MACRS.