A recent annual report for FedEx includes the following information: Required: Explain why FedEx uses different depreciation

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A recent annual report for FedEx includes the following information:

Required:
Explain why FedEx uses different depreciation methods for financial reporting and tax purposes.

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Financial Accounting

ISBN: 9781264229734

11th Edition

Authors: Robert Libby, Patricia Libby, Frank Hodge

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Question Posted: Sep 27, 2022 03:38 AM

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A recent annual report for FedEx includes the following information: Required: Explain why FedEx uses different depreciation

Question:

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.

Step by Step Answer:

Straightline depreciation SL is a simple method to use and understand Managers often ...View the full answer

Financial Accounting

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