Choose the one alternative that best completes the statement or answers the question.

3) Allocation of the historic costs of fixed assets against the annual revenue they generate is called ________.

A) arbitraging B) amortization C) depreciation D) securitization

4) A corporation ________.

A) must use different depreciation method for tax purposes, but strictly mandated depreciation methods for financial reporting purposes

B) must use the straight-line depreciation method for tax purposes and double declining depreciation method financial reporting purposes

C) can use different depreciation methods for tax and financial reporting purposes

D) can use straight-line depreciation method for tax purposes and MACRS depreciation method financial reporting purposes