Many Companies Use an Accelerated Depreciation Method Because

Multiple Choice

Many companies use an accelerated depreciation method because:

A) It is required by the tax code.
B) It is required by financial reporting rules.
C) It yields larger depreciation expense in the early years of an asset's life.
D) It yields a higher income in the early years of the asset's useful life.
E) The results are identical to straight-line depreciation.