University of PhoenixOP Standard Accounting Procedure Case Study

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ZngglTert

Business Finance

University of Phoenix

Question Description

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.

  • 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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Explanation & Answer

Attached. Please let me know if you have any questions or need revisions.

BUSINESS MANAGEMENT OUTLINE
Thesis statement: Responding to the suggestion made by the accountant to follow the doubledeclining method
1. Have agreed to follow the advice given by the accountant to follow the double-declining
method with reasons explained.


1

BUSINESS MANAGEMENT

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BUSINESS MANAGEMENT

2

Currently, using the straight-line method, the company has depreciated its assets.
However, the accountant has advised that by implementing the double-retail method, there would
be ...

Punapryybe_Vil (25790)
University of Maryland

Anonymous
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