Question: A recent annual report for FedEx includes the following information: For financial reporting purposes, we record depreciation and amortization of property and equipment on a

A recent annual report for FedEx includes the following information:
For financial reporting purposes, we record depreciation and amortization of property and equipment on a straight-line basis over the asset’s service life or related lease term if shorter. For income tax purposes, depreciation is computed using accelerated methods when applicable.
Required:
Explain why FedEx uses different methods of depreciation for financial reporting and tax purposes.

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