Accelerated Method of Depreciation

Accelerated method of depreciation is a method under which the company charges higher depreciation during earlier year of the asset life which is a different from straight line method of deprecation which charges fix amount every year.

Accelerated depreciation is used by the company either for tax purpose that is when company wants to show more deprecation as an expense and thereby reducing the profits for that year or when the asset has a shorter productive use for a company.

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