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Question - The Accounting Depreciation (Amortization) is a concept utilized under GAAP to match the costs and benefits of using depreciable assets. You just joined a company which is in its first year of operations. The CEO called you in to help in an issue that is "Not clear in my mind" she said. Someone told me that there are differences between accounting and tax depreciation.
Required -
-Describe the similarities and differences between the procedures used to calculate amortization expense for accounting records and those procedures used to establish the amount of CCA to be deducted in tax returns.
-Use the following example explain to your CEO the difference described above. A brand new $45,000 vehicle with useful life of 6 years and salvage value 0.
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Computation of Free Cash Flow
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