Company a Uses an Accelerated Amortization Method While Company B

Multiple Choice

Company A uses an accelerated amortization method while Company B uses the straight-line method for an asset of the same cost and useful life.Which of the following statements is true?

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