Answered: Depreciation Expense shown on a…

Depreciation Expense shown on a company's income statement must be the same amount as the depreciation expense on the company's income tax return. True False

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 8GI

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Question

Depreciation Expense shown on a company's income statement must be the same amount as the depreciation expense on the company's income tax return.

True

False

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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