WK2, DQ2 - organizations do not use this method for their...

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Which depreciation method provides you with the highest depreciation expense in the first year? Explain why. When might a company want the highest depreciation expenses possible? When might a company want the lowest depreciation expenses possible? The double declining depreciation (an accelerated depreciation method) maximizes the  depreciation in the early years of the asset, resulting in a negative effect on net income. Most 
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Unformatted text preview: organizations do not use this method for their financial accounting, but do use it for tax accounting purposes. Maximizing an expense early in the assets life will reduce a companys tax burden....
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This note was uploaded on 08/15/2010 for the course ACCT Acc281 taught by Professor Tontis during the Spring '10 term at DeVry Long Beach.

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