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Under current laws and regulations, corporations must use straight-line deprecia

ID: 2697144 • Letter: U

Question

Under current laws and regulations, corporations must use straight-line depreciation for all assets whose lives are 5 years or longer.

Using MACRS depreciation rather than straight line normally has the effect of speeding up cash flows and thus increasing a project

A.

Under current laws and regulations, corporations must use straight-line depreciation for all assets whose lives are 5 years or longer.

B.

Using MACRS depreciation rather than straight line normally has the effect of speeding up cash flows and thus increasing a project

Explanation / Answer

b is the answer