The use of accelerated depreciation for tax purposes and straight-line depreciation for accounting purposes results in:
A. a larger amount of depreciation expense shown on the tax return than on the
income statement, over the asset's useful life.
B. the asset being fully depreciated for tax purposes in half the time it takes to
become fully depreciated for accounting purposes.
C. a larger amount of depreciation expense shown on the income statement than on the tax return in the last year of the asset's useful life.
D. a loss on the sale of the asset in question if it is sold for its book value before its
useful life expires.
Answer: a larger amount of depreciation expense shown on the income statement than on
the tax return in the last year of the asset's useful life
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