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