Briefly explain -

• which MACRS convention is generally applicable to PP&E (equipment), and
• what other two MACRS conventions there are and exactly when or under what circumstances they would be mandatory.
• Explain why a business taxpayer that uses GAAP for financial reporting would end up with "book-tax differences" relating to the depreciation of balance-sheet assets. In other words, how do GAAP and tax depreciation differ? Identify and briefly explain at least two major differences