A for-profit healthcare business expects to make a large profit in the next year because it has completed its payments on a mortgage. To lower its taxes in its next fiscal year, it buys expensive equipment and ____.

Question

Quizplus · Accepted Answer

Accelerated depreciation allows a business to write off the cost of the purchased equipment more quickly, reducing taxable income in the short term and thus lowering taxes in the next fiscal year.

A For-Profit Healthcare Business Expects to Make a Large Profit