The use of accelerated depreciation for tax purposes will generally produce a present value of tax savings from depreciation expense that is ________.

Question

Quizplus · Accepted Answer

Accelerated depreciation allows for a faster write-off of an asset, which results in greater tax savings in the early years of ownership. This leads to a higher present value of tax savings compared to straight-line depreciation, which spreads out the tax savings over the useful life of the asset.

The Use of Accelerated Depreciation for Tax Purposes Will Generally