Many Companies Use Accelerated Depreciation for

Multiple Choice

Many companies use accelerated depreciation for

A) financial reporting purposes and a different method for tax purposes.
B) financial reporting purposes because depreciation is not allowed for tax purposes.
C) tax purposes because it results in a larger net income in the early years of a plant asset's life.
D) tax purposes because of a desire to report higher expenses in early years in order to pay lower taxes.