What is the modified accelerated cost recovery system

Assignment Help Accounting Basics
Reference no: EM131213923

A. Are the amounts at which fixed assets are reported in the balance sheet their approximate market values as of the balance sheet date? Discuss.

B. (a) Under what conditions is the use of an accelerated depreciation method most appropriate?

(b) Why is an accelerated depreciation method often used for income tax purposes?

C. What is the Modified Accelerated Cost Recovery System (MACRS), and under what conditions is it used?

D. Is it necessary for a business to use the same method of computing depreciation

(a) for all classes of its depreciable assets.

(b) in the financial statements and in determining income taxes.

Verified Expert

We have two answers, according to 1) US GAAP A clear cut answer is no. However, it may happen just by coincidence. 2) IFRS, yes for some assets. As some fixed assets are allowed to be reevaluated. According to GAAP standards, fixed assets should be at historical cost minus accumulated depreciation.

Reference no: EM131213923

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd