Many companies use accelerated depreciation in computing taxable income because:
A)it reports higher net income in the early years as compared to other methods.
B)it is required by IFRS.
C)it is easier than straight-line deprecation.
D)it postpones tax payments until later years because it lowers taxable income in the early years.

Question

Quizplus · Accepted Answer

The use of accelerated depreciation methods for tax purposes allows a company to delay or defer income taxes to later years because it lowers taxable income in the early years of an asset's life.

Many Companies Use Accelerated Depreciation in Computing Taxable Income Because