Income tax depreciation is governed by the tax statutes while the accounting depreciation is governed by the accounting policies of the respective persons. Give the rationale for this dimension.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter8: Cost Analysis
Section: Chapter Questions
Problem 2E
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Income tax depreciation is governed by the tax statutes while the accounting depreciation is governed by the accounting policies of the respective persons. Give the rationale for this dimension.

 

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