A Company That Utilizes the MACRS System of Depreciation but Does

Multiple Choice

A company that utilizes the MACRS system of depreciation but does not use bonus depreciation:

A) will have equal depreciation costs each year of an asset's life.
B) will have a greater depreciation tax shield in Year 2 than in Year 1.
C) can depreciate the cost of land.
D) will expense less than the entire cost of an asset.
E) will fully depreciate a MACRS five-year asset within 5 years.