An analysis of tax benefits with different depreciation methods
ABSTRACT An operational asset of the company starts to lose value as soon as it is purchased. This reduction in value can be termed as ‘depreciation’. This decrease in the value of an asset occurs due to usage, passage of time, wear and tear, technological out dating or obsolescence, depletion, inadequacy, decay etc. Different assets are acquired at a certain value and they depreciate over time. The annual loss in the value of any asset on account of its depreciation can be calculated using different methods (discussed in the essay). Every method has a different effect on the tax calculation ...
