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A recent annual report of H. J. Heinz Company includes the following note: Depreciation: For financial reporting purposes, depreciation is provided on the straight- line method over the estimated useful lives of the assets, which generally have the following ranges: buildings— 40 years or less; machinery and equipment— 15 years or less; computer software— 3– 7 years; and lease hold improvements— over the life of the lease, not to exceed 15 years. Accel-erated depreciation methods are generally used for income tax purposes. b. Why do you think that the company uses accelerated depreciation methods in its income tax returns?

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