With regard to depreciation and income taxes, which of the following statements is not true? A)When calculating taxable income, the taxpayer must choose the method that best reflects the pattern in which the asset's future economic benefits are consumed. B)When calculating taxable income, the taxpayer must use the rate set by Canada Revenue Agency. C)When calculating taxable income, the taxpayer must use the diminishing-balance method for most assets. D)When calculating taxable income, the amount of depreciation calculated for income tax purposes must be deducted, rather than the amount of depreciation calculated for financial reporting purposes.

Question

Quizplus · Accepted Answer

Statement A is not true because, for tax purposes, taxpayers are required to follow specific depreciation methods and rates as prescribed by tax laws and regulations, such as the Canada Revenue Agency in Canada, rather than choosing a method that reflects the consumption of future economic benefits, which is more relevant to financial accounting.

With Regard to Depreciation and Income Taxes, Which of the Following