24. Suppose a tax manager at the company tells you that the accelerated method of depreciation is starting to “turn around.” What does this mean?

1. Annual depreciation expense under the straight-line method is more than under the accelerated method.
2. Annual depreciation expense under the straight-line method is less than under the accelerated method.
3. The IRS is no longer allowing accelerated depreciation.
4. The IRS is recomputing depreciation with the straight-line method.