Depreciation is often described as a "tax shield."
Required:
A. Explain how depreciation provides such a shield.
B. MACRS is an accelerated depreciation system. Explain how an accelerated system can provide a more beneficial tax shield than, say, a straight-line depreciation system.

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The Answer of Depreciation is often described as a "tax shield."
Required:
A. Explain how depreciation provides such a shield.
B. MACRS is an accelerated depreciation system. Explain how an accelerated system can provide a more beneficial tax shield than, say, a straight-line depreciation system.

Depreciation Is Often Described as a "Tax Shield