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Indicate Whether Each of the Following Statements Is True or False

Question 25

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Indicate whether each of the following statements is true or false.

Premises:
MACRS requires that the taxpayer estimate the salvage value of assets.
MACRS is an accelerated depreciation method commonly used for tax purposes.
The use of MACRS provides tax benefits in the early years of an asset's life,compared to use of the straight-line method.
Most companies use the same depreciation method for both financial reporting and tax reporting.
The half-year convention is a semiannual meeting of accountants and educators.
Responses:
False
True

Correct Answer:

MACRS requires that the taxpayer estimate the salvage value of assets.
MACRS is an accelerated depreciation method commonly used for tax purposes.
The use of MACRS provides tax benefits in the early years of an asset's life,compared to use of the straight-line method.
Most companies use the same depreciation method for both financial reporting and tax reporting.
The half-year convention is a semiannual meeting of accountants and educators.
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