Which of the following statements about the Modified Accelerated Cost Recovery System (MACRS) is true? (Select all that apply.)

Check All That Apply

• MACRS is not acceptable for financial reporting purposes.

• MACRS is similar to the units-of-production method and is applied over relatively short asset lives to yield high depreciation expense in the early years.

• Most corporations use MACRS to calculate depreciation expense for their tax returns.

• The lower amounts depreciation expense reported under MACRS reduces a corporation's taxable income and therefore the amount it must pay in taxes.