TB MC Qu$.9-226($Static$)$ Company A uses an accelerated depreciation method while...

Company A uses an accelerated depreciation method while Company B uses the straight$-$line method for an asset of the same cost and useful life. Which of the following statements is correct?

Multiple Choice

Company A will have higher depreciation expense in the early years, but Company B will have the higher depreciation expense towards the end of the asset's useful life.

Company A will consistently have higher depreciation expense until residual value is reached.

Company B will have higher depreciation expense in the early years, but Company A will have the higher depreciation expense towards the end of the asset's useful life.

Company B will consistently have higher depreciation expense until residual value is reached.