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Under MACRS, the salvage value ____ is
A. Added to the straight-line depreciation
B. Subtracted from the cost of the asset.
C. Ignored
D. Added to the cost of the asset.

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Answer:

C. Ignored

Explanation:

Marcs is a tax depreciation system that helps to determine the actual cost of an asset by depreciating it yearly. There are many aspects of this technique that allows recovering the cost basis of various assets. In MACRS salvage value is completely ignored. This technique allows the measurement of the cost of an asset by completely ignoring the salvage value.

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