. You accidentally listen to a conversation of two junior cost accountants discussing the choice of depreciation...

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. You accidentally listen to a conversation of two junior cost accountants discussing the choice of depreciation method for a newly bought asset. Both accountants agree that the asset should be depreciated using accelerated depreciation in order to benefit from deferring some income tax until the later years of the asset's life.

Are they right to base imputed depreciation on tax considerations? What other factors have to be taken into account when deciding upon the depreciation of an asset?

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