Question

23	MACRS depreciation method includes:
	A.- Only 200% DB and Bonus Depreciation.
	B.- Only 150% DB and 200% DB.
	C.- 150% DB, 200% DB, SL, and bonus depreciation.
	D.- Only 200% DB.
24	If a taxpayer chooses to deduct state and local income taxes paid, how does state and local sales tax affect the depreciable basis of a vehicle used in a trade or business?
	A.- It is subtracted from the depreciable basis of the vehicle.
	B.- State and local sales tax does not affect the depreciable basis of a vehicle.
	C.- Bonus depreciation is limited by any amount paid in state or local sales taxes.
	D.- The amount paid for state and local sales taxes is added to the depreciable basis.

Tax - Intermediate Vehicle Expense [2019]
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Answer 1

23 C. -150% DB , 200% DB, SL, and bonus depreciation

MACRS depreciaton method is deoreciation method for Tax purpose which allows depreciation higher then the books depreciation rate. Depreciation methods which are includede in MACRS depreciations includes straight line and Declining Method , Declining can be double 150% ,200% . Bonus depreciation is Accelerated Depreciation and MACR stands for Modified Accelerated cost recovery system and are included under MACRS depreciation method.

24: D The amount paid for state and local sales taxes is added to the depreciable basis

Depreciable basis include cost of Asset , any expenses related to acquiring of Asset less discount and added sales tax . Sales tax will be form part of Depreciable basis and claim as an expense for Tax purpose