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:

Interlocutory Injunction

A court order issued before a trial to stop an ongoing injury.

Anton Piller Order

A court order that allows for the search of premises and the seizure of evidence without prior warning, typically used to prevent the destruction of evidence.

Permanent Injunction

A court order that permanently requires an individual or entity to either cease a specific activity or perform a specific act indefinitely into the future.

Certiorari

A court order overturning a decision and making it null and void.