Why is accelerated depreciation often favored for the corporation's set of tax books?
A) It increases the total depreciation tax shield over the project's life.
B) It reduces the total amount of taxes paid over the project's life.
C) It increases net accounting profits over the project's life.
D) It allows the depreciation tax savings to be realized earlier.

Question

Quizplus · Accepted Answer

Accelerated depreciation allows a company to write off more of an asset's cost in the early years of its life, leading to earlier tax savings and improved cash flow.

Why Is Accelerated Depreciation Often Favored for the Corporation's Set