Most companies benefit by using accelerated depreciation methods for income tax purposes.

Question

Quizplus · Accepted Answer

Using accelerated depreciation methods, such as the Modified Accelerated Cost Recovery System (MACRS), allows companies to deduct a larger portion of the asset's cost in the early years of its useful life, resulting in larger tax deductions and lower taxable income in those years. This can provide a cash flow benefit for the company.

Most Companies Benefit by Using Accelerated Depreciation Methods for Income