A Note on Expensing versus Depreciating under the Accelerated Cost Recovery System: Comment

A Note on Expensing versus Depreciating under the Accelerated Cost Recovery System: Comment

Angell and Wingler's "A Note on Expensing Versus Depreciating Under the Accelerated Cost Recovery System" failed to mention that the expensing alternative has a $5,000 limit (rising to $10,000 in 1986). This comment amends their article for the limitation as well as the ITC-related ch...

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Veröffentlicht in:Financial management 1983-07, Vol.12 (2), p.37-39
Hauptverfasser: McCarty, Daniel E., McDaniel, William R.
Format: Artikel
Sprache:eng
Schlagworte:
Accelerated
Accelerated cost recovery system
Ambivalence
Corporate taxes
Cost recovery
Depreciation
Depreciation costs
Discount rates
Internal rate of return
Investment tax credits
Mathematical models
Operating costs
Present value
Property taxes
Tax credits
Tax law
Tax rates
Writeoffs
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Zusammenfassung:Angell and Wingler's "A Note on Expensing Versus Depreciating Under the Accelerated Cost Recovery System" failed to mention that the expensing alternative has a $5,000 limit (rising to $10,000 in 1986). This comment amends their article for the limitation as well as the ITC-related change in the ACRS in the 1982 tax law. The full-basis recovery alternative is shown to be almost always inferior to the reduced basis recovery choice.
ISSN:0046-3892
1755-053X
DOI:10.2307/3665208