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management prefer tax over book depreciation

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Why would management prefer tax book depreciation over internal book depreciation for financial statement preparation in accordance with GAAP?

Doesn't the use of tax book depreciation understate the pre-tax net income of the company in the early years? If so, how does this benefit the company and the readers of the company's financial statements?

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This solution explains why management would prefer tax book depreciation over internal book depreciation for financial statement preparation in accordance with GAAP.

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Management would prefer tax book depreciation over internal book depreciation for financial statement preparation in accordance with GAAP because of the so called tax shield characteristic of depreciation. Tax book depreciation allows for the faster depreciation of assets than internal ...

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