Which of the Following Statements About Accelerated Depreciation Methods Is

Multiple Choice

Which of the following statements about accelerated depreciation methods is not correct?

A) An accelerated depreciation method may be used on newly acquired assets for income tax purposes.
B) The method permits "depreciating" the asset to a tax basis of $0 over a specified recovery period.
C) If a company uses an accelerated depreciation method in its income tax returns, it also must use the accelerated depreciation method in its financial statements.
D) Most businesses would benefit from using an accelerated depreciation method rather than straight-line depreciation in their income tax returns.