NACVA CVA Exam - Topic 2 Question 121 Discussion

Actual exam question for NACVA's CVA exam

Question #: 121
Topic #: 2

_____________ is the method that produces the largest, quickest depreciation deductions is the one most often selected by closely held businesses, since they are most eager to minimize reported taxable income.

AMACRS

BDeclining balance method

CStraight --line method

DSum-of-years

Show Suggested Answer

Suggested Answer: A

by Emilio at Mar 07, 2026, 03:11 AM

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Herminia

2 days ago

Sum-of-years is underrated, but MACRS still wins for speed!

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Leatha

7 days ago

Surprised to see MACRS as the top choice, is it really that beneficial?

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William

12 days ago

Straight-line method is too slow for those businesses!

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Marlon

17 days ago

I disagree, B) Declining balance method can also be effective.

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Nettie

22 days ago

Definitely A) MACRS, it's super popular for tax purposes.

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Erick

28 days ago

I’m leaning towards B) Declining balance, but I could be mixing it up with MACRS since they both seem to maximize deductions quickly.

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Paola

1 month ago

I feel like the straight-line method is too slow for what they want here. It’s definitely not the right choice.

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Carlene

1 month ago

I remember practicing a question similar to this, and I think the declining balance method also provides significant deductions, but MACRS is more common.

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Samira

1 month ago

I think the answer might be A) MACRS, but I'm not entirely sure if it's the quickest method.

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