A Company That Uses the MACRS System of Depreciation

Multiple Choice

A company that uses the MACRS system of depreciation

A) cannot expense any of the cost of a new asset during the first year of the asset's life.
B) will expense the entire cost of an asset over the asset's class life.
C) will fully depreciate most assets over a 3-year period.
D) will forgo any benefits normally derived from the depreciation tax shield.
E) will have equal depreciation costs each year of an asset's life.