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Part $1$

The client is a corporation which uses

highminus$$tech

equipment to manufacture its product. Because of the high level of wear and tear due to long production runs and frequent technology$$ changes, the client usually replaces the equipment every two years. According to IRS$$ guidance, the MACRS life of the equipment is five years. In order to accelerate depreciation$$ deductions, which tax depreciation option should the client$$ elect?

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Part $1$

A$.$

MACRS with a

straightminus$$line

election

B$.$

unitsminus$$ofminus$$production

method

C$.$

regular MACRS treatment

D$.$

alternative depreciation system$($ADS$)$