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A benefit of using an accelerated depreciation method is that

a. It is preferred by the tax code.

b. It is the simplest method to calculate.

c. It yields a larger depreciation expense in the early years of an asset's life.

d. It yields a higher income in the early years of the asset's useful life.

e. The results are identical to straight-line depreciation.

 

 

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Elin Hessel
Elin HesselLv2
26 May 2020
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Related questions

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

a. Accelerated depreciation generates higher depreciation expenses immediately and therefore lower tax payments in the early years of the asset's life.
 
b. MACRS depreciation follows a specific pattern of depreciation.
 
c. Accelerated depreciation is easier to calculate because salvage value is ignored.
 
d. Accelerated depreciation generates a greater amount of depreciation over the life of the asset than does straight-line depreciation.

 

11. Straight-line depreciation A) results in higher net income numbers in early years than accelerated methods. results in higher expense in early years than accelerated methods. C) results in less total depreciation during the entire life of an asset than accelerated methods. results in a lower tax burden in early years. B) D)

The straight-line depreciation method and the double-declining-balance depreciation method:

a. Produce the same book value each year

b. Produce the same depreciation expense each year

c. Produce the same total depreciation over an asset's useful life

d. Are the only acceptable method of depreciation for financial reporting

e. Are acceptable for tax purposes only

 

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