Answered: Is it neccessary for a business to use…

Is it neccessary for a business to use the same method of computing depriciation for all classes of its depriciable assets?

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter20: Corporations: Distributions In Complete Liquidation And An Overview Of Reorganizations

Section: Chapter Questions

Problem 2DQ

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Question

Is it neccessary for a business to use the same method of computing depriciation for all classes of its depriciable assets?

Expert Solution

Step 1

Meaning of depreciation:

Depreciation is nothing but a decrease in the asset value due to wear and tear for being using used in the organization for several years. This expense is treated as a non-cash expense.

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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation

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