You are comparing the financial statements of two manufacturers. The two companies have exactly the same machines, bought at the same times. The machines typically last eight years. Straight Company uses straight-line depreciation, and Fast Company uses accelerated depreciation. Which company would you expect to show higher depreciation expense in each of these situations? Explain your answers.

A. Both companies are in their first year of operations.

B. Both companies are 20 years old, and are expanding every year.

C. Both companies are 20 years old, and stopped expanding after their 10th year. They have been replacing machines as old ones wear out, but not adding new ones.

D. Both companies are 20 years old, and they are shrinking. They are not replacing their machines as fast as they wear out.