Which statement is true regarding vehicles under MACRS?

The accurate statement regarding vehicles under the Modified Accelerated Cost Recovery System (MACRS) is that depreciation should reflect less value compared to the table. Under MACRS, vehicles, like other assets, are assigned to specific recovery periods for depreciation purposes, typically five years for most vehicles. This method allows for accelerated depreciation, meaning that larger depreciation expenses are recognized in the earlier years of the asset's life.

The depreciation values calculated using MACRS should decrease over the asset's life expectancy, reflecting a diminishing value based on the accelerated depreciation tables provided by the IRS. Consequently, the expectation is that the accumulated depreciation will be less than the original historical cost by the end of the depreciation period.

In this context, the other options misrepresent the nature of vehicle depreciation under MACRS. For instance, depreciation values cannot exceed historical costs because the purpose of depreciation is to allocate the asset's cost over its useful life realistically. Also, suggesting that depreciation is minimal negates the significance of asset value allocation in accounting practices. Moreover, vehicles certainly are subject to depreciation under MACRS, given that they are treated as depreciable property provided they are used in a business context.