Which of the following assets typically falls under the 5-year MACRS recovery period?

The 5-year Modified Accelerated Cost Recovery System (MACRS) recovery period applies to certain types of personal property that are commonly used in business operations. This category includes assets that have a relatively short life span and are typically subject to more rapid depreciation compared to real property.

Automobiles and computers fit into this classification because they are generally assessed to have a useful life of 5 years. As business tools, they are essential for daily operations but may become obsolete more quickly than other types of property, thus justifying the shorter recovery period for tax depreciation purposes.

In contrast, other options represent different asset types with longer recovery periods. Office furniture and fixtures generally have a 7-year recovery period, while commercial buildings and residential rental properties have recovery periods of 39 years and 27.5 years respectively, reflecting their longer useful lives.