Multiple Choice 8-1 Modified Accelerated Cost Recovery System (MACRS) (LO 8.2) Alice purchases a rental house on June 22, 2020, for a cost of $174,000. Of this amount, $100,000 is considered to be allocable to the cost of the home, with the remaining 574,000 allocable to the cost of the land. What is Alice's maximum depreciation deduction for 2020 using MACRS? Click here to view the appropriate depreciation table. Oa. $1,970 Ob. $1,009 Oc. $1.061 Od. $2,373 xe. $1,364 Feedback Check My Work Depreciation is the accounting process of allocating and deducting the cost of an asset over a period of years. MACRS allows taxpayers who invest in capital assets to write off an asset's cost over a period designated in the tax law and to use an accelerated method for depreciation of assets other than real estate. Under MACRS, taxpayers calculate the depreciation of an asset using a table which contains a percentage rate for each year of the property's recovery period. The yearly rate is applied to the cost of the asset. The cost of the property to which the rate is applied is not reduced for prior years' depreciation