TB MC Qu$.16-75($Static$)$ Poston Company uses an accelerated depreciation...

Poston Company uses an accelerated depreciation method for tax purposes rather than straight$-$line depreciation for a new asset acquisition. Which of the following choices correctly shows when the

majority of depreciation would be taken $($early or late in the asset's life$),$ when most of the tax savings occur $($early or late in the asset's life$),$ and which depreciation method would have the higher present

value?

Multiple Choice

A majority of the depreciation and tax savings occur early in life. Accelerated depreciation is the depreciation method with the higher present value

A majority of the depreciation and tax savings occur early in life. Straight$-$line depreciation is the depreciation method with the higher present value

A majority of the depreciation is taken early in life while and tax savings occur late in life. Straight$-$line depreciation is the depreciation method with the higher present value

A majority of the depreciation and tax savings occur late in life. Straight$-$line depreciation is the depreciation method with the higher present value

A majority of the depreciation is taken late in life while and tax savings occur early in life. Accelerated depreciation is the depreciation method with the higher present value