Depreciation: The Depreciation Dilemma: Its Impact on EBIT and Net Income Explained 29 juni 2022 – Posted in: Bookkeeping
To avoid this, companies should ensure that assets are correctly classified and depreciation expense is calculated accordingly. Choosing between MACRS (Modified Accelerated Cost Recovery System) for tax purposes and straight-line for book purposes allows you to optimize tax deductions and financial statements independently. Yes, if significant changes occur, such as technological advancements, a reassessment of an asset’s useful life and depreciation method may be necessary. Depreciation reduces the net book value of an asset over…
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