Which of the Following Typically Results from Using Straight-Line Depreciation

Multiple Choice

Which of the following typically results from using straight-line depreciation rather than MACRS in the set of books for shareholders?

A) Net income appears higher during the early periods of depreciation.
B) Less money is paid to the Internal Revenue Service over an asset's life.
C) Financial managers have more funds from operations available over the asset's life.
D) Cash flow from operations will be higher in the second year of the asset's life.