Simon Company and Allen Company both bought a new delivery truck on January 1 . 200 1 . Both companies paid exactly the same cost, $30,000 for their respective vehicle. As of December 3 1

, 2004, the net book value of Simon's truck was less than the Allen Company's net book value for the same vehicle. Which of the following is an acceptable explanation for the difference in net book value?

a. Both companies elected straight-line depreciation, but Simon Company used a longer estimated life,

"h. Simon Company estimated a lower residual value, but both estimated the same useful life and

~~J both elected straight-line depreciation.

c. Because GAAP specifies rigid guidelines regarding the calculation of depreciation, this situation is not possible, vd^ Simon Company is using the straight-line method of depreciation, and Allen Company is using the double-declining-balance method of depreciation.