Response to the following questions:
1. Is it necessary for a business to use the same method of computing depreciation (a) for all classes of its depreciable assets, (b) in the financial statements and in determining income taxes?
2. a. Under what conditions is the use of an accelerated depreciation method most appropriate?
b. Why is an accelerated depreciation method often used for income tax purposes?
c. What is the Modified Accelerated Cost Recovery System (MACRS), and under what conditions is it used?