Under What Conditions Would a Company Most Likely Adopt the Double-Declining-Balance

Multiple Choice

Under what conditions would a company most likely adopt the double-declining-balance method for financial reporting?

A) The company has high technology,robotic equipment in its plant that becomes obsolete quickly and declines in utility to the company more rapidly in the early years of the assets' lives.
B) The company wants to maximize its net income during the earlier years of the asset's life.
C) The company wants to maximize the asset's book value in the earlier years of the asset's life.
D) The company wants to maximize the total depreciation expense over the life of the asset.