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What impact will different depreciation methods have on a companys bottom line?

In: Business Accounting and Bookkeeping [Edit categories]

Answer:

different deprecition method impact differently on the company's profit. The straightline method of depreciation when used impact differently on the profit and loss than the reducing balance method. How do the two methods differ.

First answer by ID3641670350. Last edit by ID3641670350. Question popularity: 1 [recommend question].

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Relevant answers:

Why do companies use different depreciation methods?
They use Straight Line Depreciation because it is the easiest. If they choose to use Double-Declining Balanc or Sum-of-the-Year's-Digits, it's because they expect the productivity to be greatest in...
Why do different companies use different depreciation methods?
It depends on the kind of business that they have. Companies owning assets that decline in usefulness early may want to use the double declining method and others may want to use the straight line...
Which method of depreciation is more benificiant of the company?
It depends on whether the company is making money or not. If it is, then whatever type allows for the most expense to be written off. That allows it to pay less tax on its income.
What are the merits of straight line method of depreciation?
Straight Line Depreciation Method The simplest and most commonly used, straight line depreciation is calculated by taking the purchase or acquisition price of an asset subtracted by the salvage value...