Straight-line,declining-balance,and activity-based depreciation all are acceptable depreciation methods for both financial reporting and tax reporting.These are acceptable methods for financial reporting,not tax reporting.Most companies use MACRS for income tax depreciation.

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Straight-line, declining-balance, and activity-based depreciation are acceptable methods for financial reporting but not for tax reporting. Most companies use Modified Accelerated Cost Recovery System (MACRS) for income tax depreciation.

Straight-Line,declining-Balance,and Activity-Based Depreciation All Are Acceptable Depreciation Methods for Both