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PRINCIPLES OF ACCOUNTING II

weekly discussion question for class only 180 words required – one reference:

Your company has always depreciated assets using the straight-line method. Your tax accountant has explained that a switch to the double-declining balance method would minimize taxes in the current year, but you are concerned about the impact this change would have on the value of long-term assets on the balance sheet and future tax liabilities.

Respond to the following in a minimum of 180 words:

Assuming your projected sales (and therefore tax bracket) are predicted to increase dramatically over the next 5 years, what should you do?

 

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