1. ABC and XYZ Companies purchased identical equipment having an estimated useful life of 10 years.

   ABC uses the straight-line depreciation method and XYZ uses the reducing-balance method of depreciation.

   Assuming the two entities are similar in all other respects, which of the following statements is correct?

   		ABC's depreciation expense will be greater in the second year than XYZ's depreciation expense
   		XYZ's carrying amount will be greater than ABC's carrying amount at the end of year one
   		ABC's total comprehensive income will be greater than XYZ's total comprehensive income in year nine
   		XYZ's accumulated depreciation will be more than ABC's accumulated depreciation at the end of year one