The Internal Revenue Code (IRS) uses the Modified Cost Recovery System (MACRS) to compute depreciation for tax purposes Depreciation under MACRS is similar to that computed under the double declining balance method Initial Post Begin by reading the prompt Answer the following questions How might the MACRS system be beneficial for tax purposes for individuals and or businesses Why would businesses utilize straight line depreciation for their financial statements and MACRS for their tax accounting

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Question: The Internal Revenue Code (IRS) uses the Modified Cost Recovery System (MACRS) to compute depreciation for tax purposes. Depreciation under MACRS is similar to that

The Internal Revenue Code (IRS) uses the Modified Cost Recovery System (MACRS) to compute depreciation for tax purposes. Depreciation under MACRS is similar to that computed under the double-declining-balance method.

Initial Post

Begin by reading the prompt
Answer the following questions:
1. How might the MACRS system be beneficial for tax purposes for individuals and/or businesses?
2. Why would businesses utilize straight-line depreciation for their financial statements and MACRS for their tax accounting?

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