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March 18, 2026The Accounting Review

Accelerated Depreciation and the Allocation of Income Taxes.

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Authors

SDSidney DavidsonJohns Hopkins University

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Implication

This analysis examines tax implications of accelerated depreciation for firms, suggesting tax benefits for growing entities.

Key Points

  • The aim is to explore the impact of accelerated depreciation on income tax expenses and liabilities for firms.
  • Comparison of accelerated and straight-line depreciation methods
  • Analysis of tax effects on static and growing firms
  • Consideration of the financial reporting practices related to depreciation
  • Current tax savings from accelerated depreciation do not negatively impact future tax charges for growing firms.
  • Moribund firms may face deferred tax liabilities only in profitable years.
  • Regular disclosure of depreciation differences between tax returns and financial statements is recommended.

Cite This Study

Sidney Davidson (1958) studied this question.

synapsesocial.com/papers/69ba43984e9516ffd37a4eefhttps://doi.org/10.2308/tar-7061238
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Also Consider

Synapse has enriched 5 closely related papers on similar clinical questions. Consider them for comparative context:

  1. 1THE ALLOCATION OF INCOME TAXES--A DEFENSE.1960 · 1 citations
  2. 2Delayed Depreciation as a Tax Shield.1983
  3. 3DEFERRED INCOME TAX LIABILITY.1958
  4. 4Present Value Depreciation and Income Tax Allocation.1968
  5. 5The Interperiod Allocation of Corporate Income Taxes: A Proposal.1968