Assue that a company chooses an accelerated method ofcalculating depreciation expense for financial statement reportingpurposes for an aseet with a five-year life.

Required:

State the effect (higher, lower, no effect) of accelerateddepreciation relative to straight-line depreciation on

A. Depreciation expnse in the first year.

B. The asset's net book value after two years.

C. Cash flows from operations (excluding income taxes).