Two firms are identical in every way except that one uses straight-line depreciation for its fixed assets and the other uses accelerated depreciation for its fixed assets. All equipment has a seven-year life and no residual value. During the early years of the equipment's life, A) the firm that uses straight-line depreciation will appear to have lower total assets B) the firm that uses straight-line depreciation will appear to be less profitable C) the firm that uses straight-ine depreciation will appear to have higher total equity After reading the financial statements and footnotes of a company, an analyst identified the following intangible assets: . Product patent expiring in 40 years. . Copyright with no expiration date. Goodwill acquired 2 years ago in a business combination The firm should amortize: A) The Patent B) The Copyright C) The Goodwill A company considers a tangible asset to be impaired. The effect this impairment will have on the financial statements in the period the impairment is recognized is (comparing the with and without impairment values): A) higher net income B) higher debt to equity ratio C) higher total assets