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Why Do Many Companies Use One Method to Calculate Depreciation

question 20

Essay

Why do many companies use one method to calculate depreciation for the income statement developed for stockholders and another method for income tax purposes?


Definitions:

Mean

The arithmetic average, found by adding a set of values and dividing the sum by the number of values in the set.

Telemarketers

Individuals or companies that market goods or services to potential customers over the phone.

Introductory Subscription

A promotional offer for new subscribers, typically at a lower price or with additional benefits for a preliminary period.

Median

The middle value in a sorted, ascending or descending, list of numbers.

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