You have been hired by a high-growth startup company to assist in the determination of what depreciation method to employ for financial reporting.The company's fixed assets are equally divided among buildings and high-tech equipment (heavily used in the initial years).
(a)Can the company select different methods of depreciation for financial reporting? Explain.
(b)Explain to company management which method of depreciation would be suitable for each type of fixed assets the company employs.Also, state why.
(c)Which method of depreciation would the company choose for taxes? Explain why.

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The Answer of You have been hired by a high-growth startup company to assist in the determination of what depreciation method to employ for financial reporting.The company's fixed assets are equally divided among buildings and high-tech equipment (heavily used in the initial years).
(a)Can the company select different methods of depreciation for financial reporting? Explain.
(b)Explain to company management which method of depreciation would be suitable for each type of fixed assets the company employs.Also, state why.
(c)Which method of depreciation would the company choose for taxes? Explain why.

You Have Been Hired by a High-Growth Startup Company to Assist