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  3. companies typically use the straight-line method f

Companies typically use the Straight-Line method for financial reporting purposes and an Accelerated Depreciation method...

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Accounting

Companies typically use the Straight-Line method for financial reporting purposes and an Accelerated Depreciation method for tax returns because
a. Accelerated Depreciation allows for higher depreciation expense on the tax return and therefore reduces taxable income creating tax savings for the current year
b. Accelerated Depreciation is not allowed in accordance with GAAP
c. Straight-Line depreciation is calculated using the useful life of the asset and therefore most accurately captures the depletion of the asset over the course of times and appropriately expenses that depletion in the P&L
d. A,B&C

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