Under the modified accelerated cost recovery system (MACRS) of depreciation for property placed in service after 1986,
a) Used tangible depreciable property is excluded from the computation.
b) Salvage value is ignored for purposes of computing the MACRS deduction.
c) No type of straight-line depreciation is allowable.
d) The recovery period for depreciable realty must be at least 27.5 years.
Answer: b) Salvage value is ignored for purposes of computing the MACRS deduction.