Accelerated depreciation methods are not desirable from the income tax point of view because the asset will produce a greater proﬁt when it is new (the early years) than when it is older (the later years).

Question

Quizplus · Accepted Answer

Accelerated depreciation methods are actually desirable from the income tax point of view because they allow for larger deductions in the early years, reducing taxable income and tax liability. This results in greater cash flow for the taxpayer in the early years of the asset's life.

Accelerated Depreciation Methods Are Not Desirable from the Income Tax