Which of the Following Statements About Accelerated Depreciation Methods Is

question 14

Multiple Choice

Which of the following statements about accelerated depreciation methods is not correct?

• A) An accelerated depreciation method may be used on newly acquired assets for income tax purposes.
• B) The method permits "depreciating" the asset to a tax basis of $0 over a specified recovery period.
• C) If a company uses an accelerated depreciation method in its income tax returns, it also must use the accelerated depreciation method in its financial statements.
• D) Most businesses would benefit from using an accelerated depreciation method rather than straight-line depreciation in their income tax returns.