Why would a business elect to use the ADS straight-line method to compute regular income tax depreciation

Question:

Why would a business elect to use the ADS straight-line method to compute regular income tax depreciation rather than the 200 percent declining-balance method allowed under MACRS?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Taxation For Decision Makers 2014

ISBN: 9781118654545

6th Edition

Authors: Shirley Dennis Escoffier, Karen Fortin

See More Books

Question Posted: Mar 22, 2016 03:44 AM

See More Questions

Why would a business elect, under MACRS, to use the ADS rather than the GDS?
Why would a business use a penetration-pricing strategy instead of a single-segment strategy? How does the penetration-pricing strategy create customer value?
Why would a business use multi-segment pricing early in the late-growth stage of the product life cycle?
Three charges are placed as shown in the figure below. A scale is provided for the distances. Match the numerical values with the appropriate force of interaction. 19=8c a. b. 9=-2C I'm 93=4...
Which of the following agencies issues independence rules for the auditors of public companies? a. Financial Accounting Standards Board (FASB). b. Government Accountability Office (GAO). c. Public...
What is the difference between continuous and discrete spectra?
The Lorenz equation is widely used in the theory of non-linear equations and was encountered in modeling of natural convection. While working with these equations Lorenz discovered the phenomena of...
Denominator-level problem. Speedy, Inc. is a manufacturer of the very popular G36 motorcycles. The management at Speedy has recently adopted absorption costing and is debating which denominator level...
Please explain the optimal debt ratios and why do public utilities have high debt ratios? Please explain whether dividends increase or reduce shareholder value? How do you financially evaluate an...
Ali Ltd and Baba Ltd are two major players in the global market. Ali Ltd has always been manufacturing its components called ANT10 in-house. However, Baba Ltd recently offered to supply the ANT10 to...
An employee uses her employer's auto 75 percent for business use and 25 percent for personal use. The personal use is taxed to her as income. What percentage of the auto can the employer consider...
Indicate whether a taxpayer could claim deductions for depreciation or amortization for the following: a. Land used in the taxpayer's ranching business. b. An automobile used in business. The...
Athena Fabrics manufactures a specialty monogrammed blanket. The following are the cost and labor standards for this blanket: Direct material (fabric): 2.0 yards per blanket at $7.50 per yard Direct...
Which of the following is not a section of a use case scenario? (a) Identification and initiation (b) Conditions, assumptions, and questions (c) Steps performed (d) Introduction
Some claim that Microsoft is a monopolist because of the Windows operating system: there are no close substitutes for this product and, therefore, Microsoft enjoys positive profits despite making...
Codelco, a state-owned Chilean group, is the worlds single biggest copper producer, producing about 1.76 million metric tons of copper a year. BHP Billiton, the Australian group, produces about 1.14...
Analysis takes place from a _________ perspective and design takes place from a _________ perspective. (a) User and Developer (b) Developer and User (c) User and Designer (d) Designer and Developer
A class is a description of a set of objects that share the same (a) attributes, behavior and operations (b) identity, behavior and state (c) attributes, operations and relationships (d)...
In March 2024, VanHoof Engineering Ltd. (VHEL) was awarded an $86-million contract to construct a bridge over the South Saskatchewan River for the City of Saskatoon. VHEL estimated that it would take...
Which task is performed by a book-keeper? A. Analysing the trading results B. Entering transactions in the ledger C. Preparing year-end financial statements D. Providing information for...
Differentiate a cited case and a citing case.
Assume that you have found an excellent article in Tax Notes that provides a favorable interpretation of Sec. 469. Can you rely on that article as authority for your position? In general, what role...
What are some advantages of the CD-ROM, commercial on-line, and Internet platforms for CATR?
Consider the vectors u=2ij2k and v=2i+2j+4k. Find the vector components of u that are parallel and perpendicular to v.
1. Determine whether the following sets form subspaces and justify your answers. (a) {(1, 2): 122 = 0} in R (b) {(1, 2) |1|-|x2|} in R2 (c) {(x1, x2, x3): x3 = 21 or x3 = 12} in R3 (d) {(x1, x2, x3):...
Solve the system of two equations for y two equations are: A1=ax+by A2=cx+dy

Why would a business elect to use the ADS straight-line method to compute regular income tax depreciation

Question:

Step by Step Answer:

There are several reasons to elect ADS depreciation I...View the full answer

Taxation For Decision Makers 2014

Students also viewed these Business Law questions