Using accelerated depreciation for tax purposes and straight-line method for book purposes results in a deferred tax asset.

Name: Using accelerated depreciation for tax purposes and straight-line method for book purposes results in a deferred tax asset.
Brand: Quizplus
Rating: 4.7 (50 reviews)

Question

Quizplus · Accepted Answer

Using accelerated depreciation for tax purposes and straight-line for book purposes typically results in a deferred tax liability, not an asset, because it leads to lower taxable income in the early years and higher taxable income in later years.

Using Accelerated Depreciation for Tax Purposes and Straight-Line Method for Book