The following best describes the depreciation method used in MACRS-GDS. Declining Balance switching to a Straight Line Declining Balance only Straight Line only Straight Line switching to Declining Balance

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Depreciation method used in MACRS-GDS is Declining Balance only.

In the United States, the depreciation method utilized for tax reasons is called the modified accelerated cost recovery scheme (MACRS). The capitalized cost of an item may be recouped over a predetermined time via annual deductions under MACRS depreciation. The MACRS system divides fixed assets into classes with predetermined periods of depreciation.

Depreciation, according to the Internal Revenue Service (IRS), is a tax deduction that enables a firm to recoup the cost basis of particular assets. Deprecation is a yearly provision for a piece of property's wear and tear, deterioration, or obsolescence. Depreciable assets are mostly tangible ones. Similar to tangible assets, intangible assets like patents and copyrights are depreciable.

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