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A Company That Uses Accelerated Depreciation

Question 44

Multiple Choice

A company that uses accelerated depreciation:


A) would write off a larger portion of an asset's cost sooner than under the straight-line method.
B) would find that depreciation speeds up,with a small portion taken in early years and larger amounts taken in later years.
C) would find that more tax benefits occur earlier than under the straight-line method.
D) would find itself out of compliance with generally accepted accounting principles (GAAP) .
E) would find that choices "A" and "C" are truE.

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