Federal taxation accounting

17. T F Generally, taxpayers must use the Modified Accelerated Cost Recovery System or MACRS to calculate their depreciation deduction. 18. T F Depreciation may be claimed only on property used in a trade or business or for the production of income. 19. T F Land is an asset that cannot be depreciated and therefore should not be depreciated over any of the recovery periods. 20. MACRS depreciation may be calculated for tangible personal property based upon the various IRS recovery periods like those we learned in class and noted in the textbook. Select the one recovery period set forth below that is incorrect. A. 5- year property. B. 7- year property. C, 10 - year property. D. 2 - year property 21. Section 179 provides: A, An expensive election of depreciable property, allowing a deduction for the acquisition cost of new or used depreciable property in the year the property was placed in service up to the current legal limit. B. For the Modified Accelerated Cost Recovery System (MACRS) depreciation rules. C. For the rules on how to depreciate buildings. D. For the rules on how to depreciate luxury automobiles used in a trade or business