Using the straight-line depreciation method will cause a company to incur __________ in the early years of an asset's life than it would experience using an accelerated method of depreciation.
A)more tax expense
B)less tax expense
C)an equal tax expense
D)This cannot be determined from the information given.

Question

Quizplus · Accepted Answer

Using the straight-line depreciation method results in lower depreciation expenses in the early years compared to accelerated methods, leading to higher taxable income and thus more tax expense initially.

Using the Straight-Line Depreciation Method Will Cause a Company to Incur