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Company a Uses an Accelerated Depreciation Method While Company B

Question 3

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 A will show which of the following compared to Company B?


A) Higher asset values and higher net income.
B) Lower asset values and higher net income.
C) Higher asset values and lower net income.
D) Lower asset values and lower net income.

Correct Answer:

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