An announcement by the government that they will decrease corporate marginal tax rates in the future would increase the attractiveness of the diminishing value method of depreciation.

Question

Quizplus · Accepted Answer

A decrease in corporate marginal tax rates would generally make depreciation methods less impactful on tax savings, as the overall tax burden is reduced. The attractiveness of the diminishing value method, which accelerates depreciation deductions, is more pronounced when tax rates are higher, as it allows for greater upfront tax savings.

An Announcement by the Government That They Will Decrease Corporate