A benefit of using an accelerated depreciation method is that:
A) It is preferred by the tax code.
B) It yields a higher income in the early years of the asset's useful life.
C) It yields larger depreciation expense in the early years of an asset's life.
D) The results are identical to straight-line depreciation.
E) It is the simplest method to calculate.

Question

Quizplus · Accepted Answer

Accelerated depreciation methods, like double-declining balance, result in larger depreciation expenses in the early years of an asset's life, which can reduce taxable income and provide tax benefits.

A Benefit of Using an Accelerated Depreciation Method Is That