Discuss the difference between the straight-line method of depreciation and the accelerated methods. Why do companies use different depreciation methods for tax reporting and financial reporting?

Q: When a company records a deferred tax asset, it may need to also report a valuation allowance if it…

A: 1.FASB ASC 740-10-30-17 citation named as “Income Taxes–Overall–Initial Measurement Establishment of…

Q: In which situation does the tax depreciation allow the firms to defer paying income taxes?

A: Deferment of income tax liability is also called as Deferred Tax Liability. It means tax liability…

Q: Which of the following statements are true? Select one or more: a. MACRS must be used for book…

A: MACRS In the United States, MACRS (Modified Accelerated Cost Recovery System) is a form of…

Q: In accounting, which aspect pertains to the tax implications arising from compliance with…

A: Environmental regulations are regulations issued by the government in connection with climate…

Q: Which of the following statements are TRUE? a. The reason for including a treatment of depreciation…

A: The company needs to present financial statements true and fair, that is in compliance with the…

Q: different depreciation methods are used in different financial year

A: According to the concept of consistency in Accounting, accounting method used in one financial year…

Q: It is legal and ethical to use one method of deprecia method on the company's financial statements.

A: True, it is legal and ethical to use one method of depreciation for taxes and another method on the…

Q: ord increases and decreases in the fair value of an investment when accountants do not record…

A: In the case of property, plant and equipment, it has always been seen that they are maintained in…

Q: Which of these statements about depreciation is true? a. MACRS depreciation incorporates only…

A: Depreciation is an accounting method used to allocate the cost of tangible assets, such as…

Q: Present a mathematical solution in order to express that how depreciation can effect tax liability…

A: There are different types of Depreciation method. They are: 1) Straight Line Method 2) Declining…

Q: Which of the following differences between financial accounting and tax accounting ordinarily…

A: The concept of Deferred Tax arises, due to the timing difference between income as per the…

Q: Which of the following is not deductible from business income? Group of answer choices Casual…

A: Business income is earned revenue that includes all money generated by an entity's operations.…

Q: Why do most of the firms select straight-line depreciation for book depreciation?

A: Straight Line Depreciation method is a method in which original cost of asset after salvage value is…

Q: hy do companies choose to accelerate depreciation on their tax return and not on their income…

A: Depreciation is the decrease in value of assets and in accerlated method there is more depreciation…

Q: explain what a growing balance in the deffered income tax liability is likely to indicate about a…

A: This question deals with the IFRS 12 "Deferred tax" As per IFRS,  When there is temporary taxable…

Q: Answer the following questions in depth .... Why do accountants have to classify items as capital…

A: Disclaimer: “Since you have asked multiple questions, we will solve the first question for you. If…

Q: is the temporary differrence of depreciation between financial accounting and taxation puposes…

A: In accounting, a temporary difference is a difference between an asset or liability's carrying…

Q: What is the difference between depreciation expense and accumulated depreciation?

A: “Hey, since there are multiple questions posted, we will answer first question. If you want any…

Q: Why would companies choose one method of accounting for Depreciation over another method?  What are…

A: Most companies choose one method of accounting over another method on the basis of the accounting…

Q: What is depreciation? Why are depreciation methods important in the business arena?  Explain the…

A: Depreciation is the loss in the value of the asset caused due to its usage, wear and tear. There are…

Q: Depreciation is needed only for computing income taxes. True or false?

A:

Q: Match the concept that closely describes a particular depreciation method. Choose the correct answer…

A: Lets understand the basics. Double declining balance method is a accelerated depreciation method…

Q: How does depreciation give tax benefits? What are the advantages of Internal Financing?

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Which of the following is an example of a tax credit available to businesses? A) Depreciation B) Net…

A: The Research and Development (R&D) tax credit (option C) is an example of a tax credit available…

Q: How does the concept of depreciation affect the financial statements of a company, and what methods…

A: Depreciation is the systematic distribution of a tangible asset's purchase price over the course of…

Q: Given the frequently changing nature of depreciation and tax law,what must we use?

A: Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset due to…

Q: f a company is seeking to minimize its income tax expense, the depreciation method it would most…

A: Each company have choice to choose method of depreciation and depreciation method used must be based…

Q: Discuss whether and how a company should account for a revaluation increase and a revaluation…

A: The answer are as follows

Q: Requirement Complete the following table by indicating: 1. The section of the income statement where…

A: Gain on sale of plant assets is a non operating because plant are used to manufacture and not used…

Q: It is legal for a company to use one method of depreciation for tax reporting purposes and a…

A: Tax authorities frequently permit depreciation to be taken in ways that are more expedited or…

Q: Why would a company use accelerated depreciation instead of straight-line depreciation

A: The depreciation expense is charged on fixed assets as reduction is value of the fixed assets with…

Q: the depreciation method that is allowable under the income tax act is referred to as straight- line,…

A: The depreciation method that is allowable under the income tax act is referred to as "capital cost…

Q: A valuation allowance for deferred tax assets   Select one: a. Is required when future deductible…

A: A valuation allowance is a counter-account to a deferred tax asset account that reflects the amount…