Accountıng Iı Deneme Sınavı Sorusu #1122676

Why would a business select an accelerated method of depreciation for tax purposes?


Accelerated depreciation is easier to calculate because salvage value is ignored.

Accelerated depreciation generates higher depreciation expense immediately. 

Accelerated depreciation generates a greater amount of depreciation over the life of the asset than does straight-line depreciation.

MACRS depreciation follows a specifi c pattern of depreciation. 

The depreciation expense gradually decreases through the following years of the asset. 


Yanıt Açıklaması:

Accelerated depreciation generates higher depreciation expense immediately, and therefore lowers tax payments in the early years of the asset’s life.

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