The modified accelerated cost recovery system (macrs):
a. is identical to units of production depreciation.
b. is an outdated system that is no longer used by companies.
c. is included in the u. s. federal income tax rules for depreciating assets.
d. does not allow partial year depreciation.
e. is required for financial reporting.

The correct option here is C) it is included in the U.S. federal income tax rules for depreciating assets.

Explanation:

MACRS which is termed as Modified accelerated cost recovery system, this is a depreciation system which U.S. government brought after the Tax reform act , 1986 was released. According to this concept, it allows a company to recover cost basis on certain assets through annual deductions ( for value depreciation ) over a period of assets life.

U.S. government has given the guidelines for which asset are going to be considered for MACRS and useful life figure to be used. Also this type of depreciation system is beneficial for company's from a tax perspective , as the amount of depreciation charged in first years of assets would be high and in the later years it would be low.

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