5.1 Introduction

The ACRS depreciation method uses a rate or percentage in calculating depreciation expense. The percentage that is used is determined by the type of asset, how long the asset has been in service, and in some cases when the asset was purchased. The IRS provides numerous tables that specify percentages for different classes of assets. The menu selection ACRS Tables, under the Select, Fixed Assets menu, allows you to enter the IRS ACRS percentage tables needed for your particular assets.

Before entering assets in the fixed asset master file that are depreciated using the ACRS depreciation method, you must enter the appropriate ACRS percentage tables on the ACRS Tables form. The first part of the form is shown below.

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