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.

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Definitions:

Left Lung

The smaller of the two lungs in the human body, consisting of two lobes, to accommodate the heart's position on the left side.

Lobes

Divisions or sections of an organ, separated by fissures or connective tissue, often found in the brain, lungs, and liver.

Pharynx

A muscular tube that serves as a pathway for both air (to the larynx) and food (to the esophagus), playing a role in the respiratory and digestive systems.

Oropharynx

The part of the throat at the back of the mouth behind the oral cavity, including the tonsils.