3. Which of the following statements about depreciation is true of Select one: stion a. The choice of depreciation method has no impact on a firm's value because the same amount of depreciation is taken over the life of an asset regardless of the method used. b. A shareholder wealth maximizing corporation prefers to defer depreciation expense in order to increase current reported profits. C. Depreciation must be calculated the same way for financial reporting and tax purposes. d. Depreciation is a non-cash expense, but it is important because it affects a corporation's tax liability. Previous page Next page