The fact that generally accepted accounting principles allow companies flexibility in choosing between certain allocation methods can

make it difficult for a financial analyst to compare periodic performance from firm to firm.

Suppose you were a financial analyst trying to compare the performance of two companies. Company A uses the double$-$declining$-$

balance depreciation method. Company B uses the straight$-$line method. You have the following information taken from the $12/31/2024$

year$-$end financial statements for Company B:

Income Statement

Depreciation expense $,$$$8,000$

Balance Sheet

Assets:

$\backslash$table$[[$Plant and equipment, at cost$,$$$160,000$

$(32,000)$