How is the MACRS depreciation method under IRS rules different from the straight line depreciation allowed under GAAP rules What is the implication on incremental after tax free cash flows from firms investments ...

GAAP allows the straightline depreciation method In contrast an accelerated metho ...

How is the MACRS depreciation method under IRS rules different from the straight-line depreciation allowed under GAAP

Question:

How is the MACRS depreciation method under IRS rules different from the straight-line depreciation allowed under rules? What is the implication on incremental after-tax free cash flows from firms’ investments?

GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the...