There are two main reasons why we need to deal with depreciation. Whic

There are two main reasons why we need to deal with depreciation. Which of the below is one of these reasons?

A) The gain but not the loss when a capital asset is disposed
B) The loss but not the gain when a capital asset is disposed
C) The tax flow implications from the OCF
D) The tax rate implications from the OCF

ANSWER

Answer: C
Explanation: C) There are two main reasons why we need to deal with depreciation. They are the tax flow implications from the OCF and the gain or loss at disposal of a capital asset.