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If a firm's management wants to use its discretion over accounting choices to increase operating income in the next period, they are most likely to:

If a firm's management wants to use its discretion over accounting choices to increase operating income in the next period, they are most likely to:

  1. decrease the assumed useful lives of plant and equipment.
  2. change from straight-line to double-declining method.
  3. write up plant and equipment from depreciated cost to its fair market value.
  4. increase the assumed residual values of plant and equipment.

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