Business Administration

Tag: Modified Accelerated Cost Recovery System

Bookkeeping – Book and Tax Depreciation (Lesson 52)

Mar 19, 2017

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by

David J Hoare MSA

in Bookkeeping – Regular Business Activity

One of the differences between book income and taxable income is depreciation. In general Section 168 of the Internal Revenue Code allows businesses to accelerate their depreciation for tax purposes.
Accelerated Depreciation – An Explanation

Dec 17, 2013

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by

David J Hoare MSA

in Report Analysis – How to Read the Statements

Unlike traditional straight line depreciation where the asset value is costed out to depreciation expense in equal increments over a given life expectancy, accelerated depreciation expenses the cost at higher values during the earlier accounting periods and at a lower amount towards the last half of the asset’s life expectancy.