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 for an asset of the same cost and useful life.Other things being equal,which of the following is true?

A) Company A will have higher net income in the early years but Company B will have higher net income towards the end of the asset's useful life.
B) Company A will consistently have the larger net income until residual value is reached.
C) Company B will have higher net income in the early years but Company A will have higher net income towards the end of the asset's useful life.
D) Company B will consistently have the larger net income until residual value is reached.