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38. Company A uses an accelerated depreciation method while Company B uses the straight-line method for an asset of the same cost and useful life.
38. Company A uses an accelerated depreciation method while Company B uses the straight-line method for an asset of the same cost and useful life. Other things being equal, which of the following is correct? O Company B will have higher net income in the early years, but Company A will have higher net income towards the end of the asset's useful life. O Company A will have higher net income in the early years, but Company B will have higher net income towards the end of the asset's useful life. Company A will consistently have the larger net income until residual value is reached Company B will consistently have the larger net income until residual value is reached
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