Which of the following is the benefit of depreciation expense on a plant asset when considering investment decisions with taxes?
A) increased future operating income
B) future tax deduction
C) increased cost of plant asset
D) decreased cost of plant asset

Question

Quizplus · Accepted Answer

Depreciation expense on a plant asset provides a future tax deduction. This reduces the taxable income and hence the taxes. Therefore, it is a benefit while making investment decisions.

Which of the Following Is the Benefit of Depreciation Expense