Managers Prefer Accelerated Depreciation Over Straight-Line Depreciation for Income Tax

question 60

Multiple Choice

Managers prefer accelerated depreciation over straight-line depreciation for income tax purposes because accelerated depreciation:

• A)provides the fastest tax deductions.
• B)decreases immediate tax payments.
• C)allows the company to reinvest the tax savings back in the business.
• D)does all of the above.

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Definitions:

Reinforcement

A concept in psychology referring to any process that increases the likelihood of a behavior being repeated, using rewards or punishments following that behavior.

Social Learning

The process of acquiring skills, knowledge, and behaviors by observing and imitating others.

Bribery

The offering, giving, receiving, or soliciting of any item of value as a means of influencing the actions of an individual holding a public or legal duty.

Contextual Influences

The impact of environmental and situational factors on individuals' thoughts, behaviors, and feelings.