According to the IRS, “The Modified Accelerated Cost Recovery System (MACRS) is the proper depreciation method for most property”. This method of depreciation allows a larger tax deduction in the early years of an asset and less in later years. It is a tax accounting method by which an asset’s cost is allocated over the duration of its useful life using one of several generally accepted depreciation formulas. How do deferred assets impact a company’s financial performance? This may result in unearned revenue the asset being discarded even though it…
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