Using the straight-line depreciation method will cause a company to incur ____ tax expense in the early years of an asset's life than they would experience using an accelerated method of depreciation.
A)More
B)Less
C)Equal
D)This cannot be determined from the information given.

Question

Quizplus · Accepted Answer

Using the straight-line depreciation method results in lower depreciation expenses in the early years compared to accelerated methods. This leads to higher taxable income and, consequently, more tax expense in those early years.

Using the Straight-Line Depreciation Method Will Cause a Company to Incur