operty Transactions $($Ferrai$)$

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MACRS DEPRECIATION SYSTEM

Under the modified accelerated cost recovery system $($MACRS$)$ of depreciation for property placed in service after $1986$:

A$.$ Used tangible depreciable property is excluded from the computation.

B$.$ Salvage value is ignored for purposes of computing the MACRS deduction.

C$.$ No type of straight$-$line depreciation is allowable.

D$.$ The recovery period for depreciable realty must be $27\mathrm{.}5$ years.