Assume that you made a large investment this year, and that you are choosing between straight line and accelerated depre...
Assume that you made a large investment this year, and that you are choosing between straight line and accelerated depreciation methods. Which will result in higher Net Income this year?
A.Straight Line Depreciation
B.Accelerated Depreciation
c. Same
Homework Answers
Ans A.Straight Line Depreciation
Accelerated depreciation is a method in which the asset loses book value faster than the straight line depreciation. In this since the depreciation charged is higher in earlier years, net income is less.
Thus, straight line depreciation results in higher net income this year.
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Assume that you made a large investment this year, and that you are choosing between straight line and accelerated depre...
Assume that you made a large investment this year, and that you are choosing between straight...
Assume that you made a large investment this year, and that you are choosing between straight line and accelerated depreciation methods. Which will result in higher cash flows this year? a. Straight Line Depreciation b. Accelerated Depreciation c. Same
Discuss the difference between the straight-line method of depreciation and the accelerated methods. Why do companies...
Discuss the difference between the straight-line method of depreciation and the accelerated methods. Why do companies use different depreciation methods for tax reporting and financial reporting?
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3. Use the information in Table 1.2 to determine the items listed below for the Accelerated...
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