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4. Although Suki is a knowledgeable tax and accounting professional, her partners, Carlos and Leticia, have little tax experience. During your recent visit to CLS,
4. Although Suki is a knowledgeable tax and accounting professional, her partners, Carlos and Leticia, have little tax experience. During your recent visit to CLS, Carlos asked you the following questions. How would you respond to these questions posed by a businessperson without a tax background? Draft your responses in the form of a letter to a client. a. Why is land not depreciable? b. Why can't we use the same depreciation calculations prepared for our financial statements in filing our tax returns? c. Why is depreciation expense on our financial statements significantly less than what you have calculated for tax purposes
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