Which of the statements below is FALSE? A) Under the modified accelerated cost recovery system (MACRS)…

Which of the statements below is FALSE?

Place Order

A) Under the modified accelerated cost recovery system (MACRS)
system of depreciation, the government classifies all assets into
groups that are assigned specific “lives” for the purpose of
depreciation.

B) Under the modified accelerated cost recovery system (MACRS)
system of depreciation, once the assigned class life is
established, an adjustable percentage of the cost is expensed each
year as depreciation.

C) Under the modified accelerated cost recovery system (MACRS)
system of depreciation, it can be assumed that an asset’s assigned
life class is the shortest allowable recovery period for allocating
the capital expenditure costs and reducing taxes.

D) Depreciation or “expired” costs each year do not reflect cash
flows because the actual purchase and installation (outflow of
dollars) of the machines have already taken place.