Question: Company A uses an accelerated depreciation method while Company B uses the straight-line method. All other things equal, during the first few years of the

Company A uses an accelerated depreciation method while Company B uses the straight-line method. All other things equal, during the first few years of the asset's use, Company A will show which of the following compared to Company B?

Multiple Choice

Lower asset values and lower net income.
Higher asset values and lower net income.
Higher asset values and higher net income.
Lower asset values and higher net income.

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