Assumptions of the modified accelerated cost recovery system

Assignment Help Financial Management

Reference no: EM13804983

Which of these are assumptions of the Modified Accelerated Cost Recovery System (MACRS)?

- All assets have zero salvage value.

- All service dates are assumed to be at the end of the purchase year.

- Costs are based on only the purchase price of the asset.

- Deemed asset lives most often exceed what a reasonable person would assume.

- All assets are depreciated with the straight line method.

This is a multiple choice question and it possible to have several choices so just show the correct choices

Reference no: EM13804983

Questions Cloud

What are the main properties of indifference curve : Define Indifference Curve and what are the main properties of Indifference Curve? By using Indifference Curve analysis explain how the consumer attains maximum level of satisfaction?

Show how to calculate the present value of this project : The Newport Beach Sanitary Agency is presently shipping its waste to another municipality at an annual cost of $100,000. It is considering building a landfill near the city. Show how to calculate the present value of this project. Explain why the IRR..

Investment management : Saint and Lewis Investment Management (SLIM) Inc. is considering purchasing bonds to be issued by Caterpilar Inc. The bonds have a face value of $10,000 and a coupon rate of 6%. The bonds will mature 10 years after they are issued. The issue price is..

Annual worth of an asset that costs nothing : What is the annual worth of an asset that costs nothing and gives you benefits of $3 in years gone through 10? Assume your MARR is 20%. Show work please

Assumptions of the modified accelerated cost recovery system : Which of these are assumptions of the Modified Accelerated Cost Recovery System (MACRS)?

What is the equilibrium price : Let's consider a market with both foreign and domestic (i.e. U.S.) production. Suppose that domestic (U.S.) demand is given by QD = 6000 - 50P and domestic supply is QS . Foreign producers can supply any quantity at a price of $40.

Suppose the government increases spending : Suppose the government increases spending by $30 billion and raises taxes at by $20 billion at the same time. Then,

Why do you think economics gets a bad rap : Economics has a notoriously bad reputation among students. They assume it will be dry, boring, and not relevant to their lives. They also think it's hard because the course content must be understood rather than memorized. Why do you think economics ..

Kinds of expenses-automated storage and retrieval systems : There are two kinds of expenses we need to look at here: capital and operational. Do a little research and explain what these things are. Now, what will the capital expense be for the ASRS (Automated storage and retrieval systems) ?

User Account

All Pages