Which of the following statements regarding depreciation is incorrect?
When selling a partially depreciated asset, a firm is only responsible for taxes on the sale price minus the un-depreciated book value.
Under the accelerated method, the IRS allows an asset to be fully depreciated to a zero book value.
The straight line method is preferred when reporting financial income to shareholders.
When filing for corporate taxes, companies prefer to use the depreciation method that allows them to deduct equal amount of depreciation each period.