If a company is concerned about minimizing its income tax burden,it would use the straight-line depreciation method to accomplish this objective.

Question

Quizplus · Accepted Answer

The straight-line depreciation method spreads the cost of an asset evenly over its useful life, resulting in smaller depreciation expenses compared to accelerated depreciation methods, which would result in higher upfront depreciation expenses and thus lower taxable income in the early years.

If a Company Is Concerned About Minimizing Its Income Tax