Most companies use accelerated depreciation for tax purposes as it reduces taxable income due to higher depreciation expense in the early years of an asset's life.

Question

Quizplus · Accepted Answer

Accelerated depreciation allows companies to deduct a larger portion of an asset's cost in the early years, reducing taxable income and resulting in lower taxes. It is commonly used for tax purposes.

Most Companies Use Accelerated Depreciation for Tax Purposes as It