You have been asked to evaluate the Paper Street Soap Co. and Suds Mayhem Co., two companies in the same industry with the exact same reported revenue and are very similar in their operations. One difference is the Paper Street Soap has higher net income than Suds Mayhem. What would explain this difference?

	A.	Suds Mayhem Co. has lower estimate for warranty expense as a percentage of sales.
	B.	Paper Street Soap Co. has higher estimate for warranty expense as a percentage of sales.
	C.	Suds Mayhem Co. has a higher estimate for the useful life of assets.
	D.	Paper Street Soap Co. has a lower estimate for the useful life of assets.
	E.	Paper Street Soap Co. has a lower estimate for doubtful accounts.