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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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