Briefly describe MACRS depreciation. What will be an ideal response?

Briefly describe MACRS depreciation.

What will be an ideal response?

ANSWER

Answer: MACRS is a government-mandated accelerated depreciation system that depreciates the capital asset at the maximum accelerated amount allowed each year. MACRS stands for modified accelerated cost recovery system and classifies the “life” of every asset for use in determining the depreciation expense each year.