Question

Nancy O’Callaghan, the president of Clean Enterprises, is proposing the following amortization policy for property, plant, and equipment: I want to keep things simple and minimize any deferred tax liabilities. I propose we use the CCA rates for declining- balance depreciation for all of our assets. These are the tax rules! I know that the equipment will last a longer period of time, but I prefer the fast write- off to be conservative.

Required:
Is this depreciation policy acceptable? Write a brief memo to the president explaining your position.



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  • CreatedFebruary 17, 2015
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