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Suppose a firm switches from straight-line depreciation to an accelerated depreciation methods (such as sum of the years digits depreciation) in the later years of
Suppose a firm switches from straight-line depreciation to an accelerated depreciation methods (such as sum of the years digits depreciation) in the later years of some equipment's life. (a) Explain how this move would impact the firm's net income in the year of the switch? (b) Also explain which item(s) on the balance sheet would be impacted in the year of the switch and why they would be impacted this way
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