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:

Organizational Reward System

A structure within an organization designed to motivate employees by recognizing and rewarding their performance and achievements.

Political Performance Appraisals

Evaluations of an employee's work performance that are significantly influenced by office politics or the individual's position within the organizational power structure.

Taking Counsel

Taking counsel involves seeking advice or guidance from knowledgeable or experienced individuals before making significant decisions.

Durability

The ability of a product or material to withstand wear, pressure, or damage, maintaining its functionality over time.