Which one of the following is the depreciation method that allows accelerated write-offs of...

Question:

Which one of the following is the depreciation method that allows accelerated write-offs of property under various lifetime classifications?

a. IRR

b. ACRS

c. AAR

d. Straight-line to zero

e. Straight-line with salvage

Accelerated Cost Recovery System (ACRS):

The Accelerated Cost Recovery System (ACRS) is an accounting method which is used for increasing tax deduction. This method depreciates capitalized assets and allows to write them off in an accelerated manner.

Answer and Explanation:

The correct answer is b. ACRS

The ACRS, that stands for Accelerated Cost Recovery System, is a method used to depreciate tangible assets for taxation. This method allows to write off those assets in an accelerated way.


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Methods of Depreciation

from Business 110: Business Math

Chapter 6 / Lesson 1
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