Talk Time Communications is considering the purchase of a new satellite. The firm believes the satellite will help generate future earnings. In addition, the firm recognizes the tax benefits of a lower net income provided by the annual ________ of the asset.
A) inventory valuation
B) declining balance
C) appreciation
D) depreciation

Question

Quizplus · Accepted Answer

Businesses are permitted to use depreciation as an expense of business operations. This extra expense will lower a firm's taxable income.

Talk Time Communications Is Considering the Purchase of a New