If income tax effects are ignored, accelerated amortization methods tend to offset the effect of steadily increasing repair and maintenance costs on the income statement.

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Quizplus · Accepted Answer

Accelerated amortization methods allow for a larger portion of the asset's cost to be expensed in the earlier years, which can offset the impact of rising repair and maintenance costs. However, this statement specifically ignores the effects of income tax, which can complicate the analysis.

If Income Tax Effects Are Ignored, Accelerated Amortization Methods Tend