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

Question:

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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