A company that utilizes the MACRS system of depreciation but does not use bonus depreciation:

Multiple Choice

• will have a greater depreciation tax shield in Year 2 than in Year 1.

• can depreciate the cost of land.

• will have equal depreciation costs each year of an asset's life.

• will fully depreciate a MACRS five-year asset within 5 years.

• will expense less than the entire cost of an asset.