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1.Company A and Company B are identical except that A uses Double-Declining-Balance depreciation on a 20-year-life asset with no salvage value for financial reporting and

1.Company A and Company B are identical except that A uses Double-Declining-Balance depreciation on a 20-year-life asset with no salvage value for financial reporting and B uses straight-line depreciation. As a result:

a. B will report higher cash provided by operations after income tax in the fourth year.

b. A will report higher cash provided by operations before income tax in the thirteenth year.

c. B will report lower depreciation expense in the second year.

d. A will report higher net income in the third year.

e.None of the above.

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