Straight-line and accelerated are the two methods to utilized for organizations to depreciate assets. Straight-line depreciation essentially has a specific year amount of depreciation and the same amount is depreciated over that time. For example, an washing machine in your building costs $10,000, and is going to depreciate over a 4 year period with and $5000 of services to the machine. The salvage value of $3000, then the washing machine would depreciate $3000 every year it is used. Accelerated depreciation is a method that applies to assets that depreciate much quicker than other assets. "If you consider the decline in value for a car, the decline is largest in its first year, not quite as large in the following year, and, eventually, tails off to a point when there is relatively little decline per year (Finkler, 2019)." The main difference between these two methods would be that there is an unequal amount of what is being depreciated each year.

In regards to taxes, the straight-line method could result in different effects for an organization. Straight-line method can be somewhat preferable as it can show higher profits early on in financial statements. Since accelerated method depreciates more earlier, financially it looks better using the straight-line method. But, in turn it can lead to higher taxes in this case. Reporting a higher income can lead to higher taxes for an organization. "Comparing this to the SL method, taxes would be higher if this method was utilized when reporting information to the IRS (Finkler, 2019)." The taxes laws can differ throughout the country so one specific method can't be recommended for a particular asset.

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