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What should the owner of the company do

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Problem 1: A company has always depreciated assets using the straight-line method. The tax accountant for the company has explained that a switch to the double-declining balance method would minimize taxes in the current year, but the owner is concerned about the impact this change would have on the value of long-term assets on the balance sheet and future liabilities. Assuming the projected sales (and therefore tax bracket) are predicted to increase dramatically over the next 5 years, what should the owner of the company do?

Reference no: EM132704378

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