Financial Accounting by Harrison

Author:Harrison
Format: epub
Published: 0101-01-01T00:00:00+00:00

$ of Annual Depreciation

T ime, in years

12345

$ of Annual Depreciation

T ime, in years

12345

Exhibit 7-9 shows the percentage of companies that use each depreciation method from a survey of 600 companies by the American Institute of CPAs.

EXHIBIT 7-9

Depreciation Methods Used by 600 Companies

88% Straight-line

7%

Accelerated

4% Units-of-production 1% Other

ISBN: 0-536-55962-7

For reporting in the financial statements, straight-line depreciation is most popular. As we shall see, however, accelerated depreciation is most popular for income-tax purposes.

Specially prepared for D03170808 on 21 Oct, 2009Financial Accounting, Seventh Edition, by Walter T. Harrison, Jr. and Charles T. Horngren. Published by Prentice Hall.

Copyright © 2008 by Pearson Education, Inc.

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