Depreciation and Journal

You plan to meet with your department's financial accounting people tomorrow to make sure they understand the differences between tax accounting and financial accounting and reporting, specifically in the area of depreciation.

From a financial accounting perspective, explain to them the purpose of using depreciation journal entries.
Describe how this is different from a tax accounting perspective.
Discuss how the depreciation that a financial accountant may use, may differ for the very same asset from what a tax accountant would use.
Do you think it is ethical to have the same asset's deprecation handled two different ways: one for tax accounting and one for financial accounting? Why or why not?
In your own words, please post a response to the Discussion Board and comment on other postings. You will be graded on the quality of your postings.
 
The following grading criteria will apply to this assignment:
Grading Criteria

20%

From a financial accounting perspective, explain the purpose of using depreciation journal entries.

20%

Describe how this is different from a tax accounting perspective.

20%

Discuss how the depreciation that a financial accountant may use, may differ for the very same asset from what a tax accountant would use.

20%

Do you think it is ethical to have the same asset's deprecation handled two different: one for tax accounting and one for financial accounting? Why or why not?

20%

Post a response to the Discussion Board and comment on other postings.

For assistance with your assignment, please use your text, Web resources, and all course materials.

Unit Materials

Unit 4