Why might a business utilize accelerated depreciation?

A business might choose to utilize accelerated depreciation primarily to increase short-term tax benefits. This method allows businesses to write off a larger portion of the asset's cost in the early years of its useful life rather than spreading the deduction evenly over time, as would occur with straight-line depreciation.

By accelerating depreciation, a company can reduce its taxable income more significantly in the earlier years, which results in tax savings that can improve cash flow. This is particularly advantageous for businesses looking to reinvest those savings back into operations or make new investments.

The other choices do not align with the benefits of accelerated depreciation. For instance, delaying tax deductions would negate the immediate tax benefits that come from accelerated depreciation, spreading tax benefits evenly counteracts the nature of the accelerated method, and reducing asset values over a longer period would not leverage the immediate deduction benefits that accelerated depreciation aims to provide. This strategic choice often reflects a broader financial planning approach where immediate cash flow improvements are prioritized.