Question

Just a short explanation will suffice

a. If permitted to choose between depreciating a cost over several years versus expensing it in a single year, which would you choose for your company? What factors might come into play in your recommendation?

b. Firms can reduce the taxes they pay in the U.S. by setting internal transfer prices so the "profit" is earned in countries with low tax rates or by selling themselves to an international firm. What are the ethical pros and cons of these practices?

Answer 1

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