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Let's assume that we are not addressing a change in method, but rather the original year when a firm decides to use straight line depreciation
Let's assume that we are not addressing a change in method, but rather the original year when a firm decides to use straight line depreciation for financial reporting purposes and MACRS depreciation for tax purposes. We know that a firm would want to use the accelerated depreciation methods under MACRS to reduce taxable income and taxes due. Can you elaborate on Why the firm would have selected a different method of depreciation for financial purposes in the year the assets were acquired?
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