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Q. Which of the following statements is correct?

  • (A) the reason why the u.s. congress allows business to use macrs depreciation as opposed to conventional methods is to reduce the business tax burden over the project life.
  • (B) under the declining balance depreciation system, it is always desirable to switch to straight line depreciation.
  • (C) when determining the cost basis for an asset’s depreciation, you must include all the costs that were incurred to keep the asset in operable condition.
  • (D) the main reason why a typical firm may use a straight line depreciation method in reporting an income to outside investors (as opposed to any other accelerated tax depreciation methods) is to abide by the accounting principle—that is to report the t
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