Which of the following is not true about the MACRS depreciation system: a. A salvage value must

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Which of the following is not true about the MACRS depreciation system: 

a. A salvage value must be determined before depreciation percentages are applied to depreciable real estate. 

b. Residential rental buildings are depreciated over 27.5 years straight­line. 

c. Commercial real estate buildings are depreciated over 39 years straight­line. 

d. No matter when during the month depreciable real estate is purchased, it is considered to have been placed in service at mid­month for MACRS depreciation purposes.

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...
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Income Tax Fundamentals 2019

ISBN: 9781337703062

37th Edition

Authors: Gerald E. Whittenburg, Steven Gill

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