36. MACRS is: A) The only accelerated depreciation method that may be used on newly acquired assets for income tax purposes. B) The only accelerated depreciation method that may be used on news acquired assets for financial reporting purposes. C) The most widely used method of depreciation in financial statement of publicly owned companies. D) Equivalent to 250%-declining-balance applied over a period of 7 years. A) 37. Responsibility for selection of the depreciation methods used in financial reporting rests with: Company management. The FASB. The IRS. The CPA firm that audits the company's financial statements. D) 38. When an asset is depreciated by the straight-line method for financial reporting purposes and an accelerated method for tax purposes, its tax basis normally is: A) Higher than its book value. B) Equal to its book value. C) Less than its book value. D) Equal to its current market value, which may be above or below book value. 39. Silverado Company purchased equipment having an invoice price of $8,000. The terms of sale were 2/10, n/30, and Silverado paid within the discount period. In addition, Silverado paid $100 delivery charge, $130 installation charge, and $550 sales tax. The amount recorded as the cost of this equipment is: A) $8,780. B) $8,390. C) $8,520. D) $8,620. 40. On March 2, 2000, Farlow Industries purchased a fleet of automobiles at a cost of $360,000. The cars are to be depreciated by the straight-line method over five years with no salvage value. Farlow uses the half-year convention to compute depreciation for fractional periods. The book value of the fleet of automobiles at December 31, 2001, will be: $108,000 B) $234,000. $324,000. D) $352,000. A) SIVO C)