Do companies prefer straight-line or accelerated depreciation?
For GAAP reporting purposes, companies generally prefer straight-line depreciation.
That's because a company will record lower depreciation in the early years of the
asset's life than if they had used accelerated depreciation. As a result, companies using
straight-line depreciation will show higher net income than under accelerated
depreciation.
Do companies depreciate land?
No, land is considered to have an indefinite life and is not depreciated