The Internal Revenue Code (IRS) uses the Modified Cost Recovery System (MACRS) to compute depreciation for tax purposes. Depreciation under MACRS is similar to that computed under the double-declining-balance method.

Initial Post

• Begin by reading the prompt
• Answer the following questions:
  1. How might the MACRS system be beneficial for tax purposes for individuals and/or businesses?
  2. Why would businesses utilize straight-line depreciation for their financial statements and MACRS for their tax accounting?