MACRS in Depreciation Problems on Contractor Business Exams

MACRS stands for Modified Accelerated Cost Recovery System. MACRS determines the useful life of assets.

For example:

When asked to find the useful life an asset, refer to the MACRS table or section within your business/accounting reference.

Refer to the Declining-Balance Depreciation Method and Straight-Line Depreciation Method sections to learn more about how to use the useful life of an asset within depreciation questions.