Using Different Depreciation Methods for Book Purposes Versus Tax Purposes

question 163

Multiple Choice

Using different depreciation methods for book purposes versus tax purposes for the same asset is

• A)not allowed since the amount can only be calculated one way or the other,not both.
• B)the direct result of the differing goals of financial and tax accounting.
• C)contrary to GAAP.
• D)against the Internal Revenue Code,and as such,against the law.

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Definitions:

Pieter Bruegel

A Flemish Renaissance painter known for his landscapes and peasant scenes.

Proverbs

Short, well-known sayings or phrases that express a general truth or piece of advice.

Tempera-And-Oil

This term refers to a painting technique that combines the use of tempera (a fast-drying paint made from pigment and a water-soluble binder) with oil paint, offering artists versatility in textures and effects.

Francis I

King of France in the early 16th century, noted for his patronage of the arts and involvement in the Italian Wars, which influenced the French Renaissance.