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ABC Laundry uses the income tax basis of accounting, a special purpose framework to prepare...

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Accounting

ABC Laundry uses the income tax basis of accounting, a special purpose framework to prepare its financial statement. Its assets are subject to cost recovery deductions and thus ABC Laundry uses the Modified Accelerated Cost Recovery System to compute these deductions. In its financial statements, ABC Laundry, who does not elect to omit substiantially all disclosures

a. Must provide, in its footnotes, information disclosures about MACRS similar to those required by GAAP for depreciation.

b. Need not identify the special purpose frameworks that it uses.

c. Need only disclose the asset base, cost recovery deductions taken in the current year, and the asset base remaining after all costs recovery deductions have been taken in prior years.

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