A corporation
A) must use the same depreciation method for tax and financial reporting purposes.
B) must use different depreciation methods for tax and financial reporting purposes.
C) may use different depreciation methods for tax and financial reporting purposes.
D) must use different (than for tax purposes), but strictly mandated, depreciation methods for financial reporting purposes.

Question

Quizplus · Accepted Answer

A corporation may choose to use different depreciation methods for tax and financial reporting purposes. However, if they choose this option, they must disclose the difference between the two methods in their financial statements.

A Corporation