Why Does the IRS Allow Larger Depreciation Amounts in the Early

Multiple Choice

Why does the IRS allow larger depreciation amounts in the early years of an asset's life?

A) The calculations are easier if you allow more depreciation in the early years of an asset's life.
B) The government wants to encourage companies to invest in assets to promote economic renewal and growth.
C) So that most income taxes are paid by average taxpayers,rather than by big corporations.
D) The calculations are more complicated,so it provides more jobs for accountants and thus stimulates the economy.