Company a Uses an Accelerated Depreciation Method While Company B

Multiple Choice

company A uses an accelerated depreciation method while Company B uses the straight -line method. All other things equal, during the first few years of the asset's use, Company B will show which of the following compared to Company A?

A) A smaller fixed asset turnover ratio and a smaller gain on asset disposal.
B) A larger fixed asset turnover ratio and a larger gain on asset disposal.
C) A smaller fixed asset turnover ratio and a larger gain on asset disposal.
D) A larger fixed asset turnover ratio and a smaller gain on asset disposal.