The Primary Advantage of Declining-Balance Depreciation Over Straight-Line Depreciation Is

question 75

True/False

The primary advantage of declining-balance depreciation over straight-line depreciation is that,while the total amount of depreciation and thus tax savings is unchanged,charges are taken sooner.This means that the firm gets the benefits of the tax savings sooner,which increases their present value.

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Definitions:

Negatively Related

A term used to describe two variables that move in opposite directions; as one increases, the other decreases.

Same Direction

A term indicating that two or more variables move in tandem, either increasing or decreasing together.

Y-variable

In statistical modeling and experiments, the dependent variable that is influenced or predicted by another variable (X-variable), used to measure outcomes or results.

Opposite Directions

A term indicating movements or trends that are diametrically contrary to each other in a physical or metaphorical sense.