Depreciation is calculated differently for financial records than depreciation (cost recovery) for income tax reporting. The Internal Revenue Service recognizes only the MACRS method. Publication 17, Your Federal Income Tax, is an important reference for income tax preparation. Go to the www.irs.gov website and Publication 17. From Publication 17's Table of Contents, select MACRS under GDS (General Depreciation System). Find the MACRS Table of Percentages. How does it compare to the table listed in the textbook? Go back to search and enter Topic 704. What are the five tests that must be met for an asset to be depreciable?