Accelerated depreciation allows firms to
A) receive less of the dollars of depreciation earlier in the asset's life.
B) receive more of the dollars of depreciation earlier in the asset's life.
C) not pay any taxes during an asset's life.
D) receive more of the dollars of depreciation later in the asset's life.

Question

Quizplus · Accepted Answer

Accelerated depreciation methods, such as the double declining balance method, allow firms to write off a larger portion of an asset's cost in the early years of its useful life, thereby receiving more of the depreciation dollars earlier. This can lead to tax savings in the initial years after an asset is purchased.

Accelerated Depreciation Allows Firms to