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Tomm Tomm
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6 years ago
Explain how a company should decide which depreciation method to use for income tax purposes.
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Financial Accounting, Canadian Edition

Financial Accounting, Canadian Edition


Edition: 5th
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ACC 925

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6 years ago
A company should use the method that produces the fastest tax deduction. CCA, or Capital Cost Allowance, is the method which produces the fastest tax deductions.

A company can use different depreciation methods for financial reporting purposes and for income tax reporting purposes. In Canada, this is considered ethical and is allowed by federal law.
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