Which of the Following Are Correct

Multiple Choice

Which of the following are correct?
I. If a company uses straight-line depreciation for financial reporting purposes, it is very likely they have a deferred tax liability with respect to its depreciable assets.
II. Straight line depreciation yields an increasing rate of return on book value over the life of asset.
III. Straight line depreciation results in lower tax payments than accelerated depreciation methods over the life of an asset.
IV. If a company revises its estimate of the useful life of an asset upwards this will decrease annual depreciation expense.

A) I, II, III and IV
B) I, II and IV
C) I, II and III
D) I and IV