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Consider the following statements regarding Company A and Company B: The two companies have identical operating results but have made different accounting method choices. Company

Consider the following statements regarding Company A and Company B:

  • The two companies have identical operating results but have made different accounting method choices.
  • Company B reported lower COGS than Company A this year. Prices rose throughout the year.
  • Both companies took a PP&E write downs in 2016. Company B reversed the write down and wrote the assets back up this year.

Which of the two companies most likely reports under US GAAP?

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