Which of the Following Typically Results from Using Straight-Line Depreciation

question 86

Multiple Choice

Which of the following typically results from using straight-line depreciation rather than MACRS in the set of books for shareholders?

• A) Net income appears higher during the early periods of depreciation.
• B) Less money is paid to the Internal Revenue Service over an asset's life.
• C) Financial managers have more funds from operations available over the asset's life.
• D) Cash flow from operations will be higher in the second year of the asset's life.