Which of the following is an accurate statement regarding financial statement and income tax depreciation methods?
A)Straight-line depreciation is the most popular method for income tax purposes.
B)The IRS expects a company to use accelerated depreciation methods for tax purposes.
C)The Modified Accelerated Cost Recovery System can be used for both financial statement and income tax purposes.
D)If an accelerated depreciation method is used for income tax purposes,a company will pay more in income taxes.

Question

Quizplus · Accepted Answer

The IRS encourages the use of accelerated depreciation methods for tax purposes to provide tax relief for businesses in the early years of asset acquisition. This allows businesses to deduct more depreciation expense sooner, reducing taxable income in the initial years of an asset's life.

Which of the Following Is an Accurate Statement Regarding Financial