Anderson School of Management Theses & Dissertations

Publication Date



As a result of the enactment of the Revenue Act of 1962, tax payers are required to take what is termed an investment credit as a deduction from their income tax liability which, in general, is equal to 7 per cent of the cost of certain depreciable property acquired during the year. The law also requires that the basis of property be reduced in an amount equal to the credit. In view of the fact that this credit may be treated in several different ways for accounting purposes, considerable controversy has developed among authorities within the accounting profession. Each of these treatments results in resenting a somewhat different picture with respect to the stated value of assets, the stated amount of income, accumulated earnings, and earnings per share for the tax year and subsequent years. The controversy concerns which of the proposed ways is best, best being defined differently by different proponents.



Document Type


Degree Name

Master of Business Administration (MBA)

Level of Degree


Department Name

Anderson School of Management

First Committee Member

Perry T. Mori

Second Committee Member

Rudyard Byron Goode

Third Committee Member

Ralph Lemon Edgel