Find assets over years using straight line depreciation

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Reference no: EM132649367

Question 1: Two companies (a and B) in their first year in business have identical and financial results. the only differences that company A depreciates its assets over 15 years using straight line depreciation and company B depreciates its assets over 10 years using straight line depreciation. (depreciation expense is the same for both financial reporting and for tax purposes.) therefore:

A) company a will report higher net income and higher net cash flow
b) company a will report lower net income and lower net cash flow
c) company a will report lower net income and higher net cash flow
d) company A will report higher net income and lower net cash flow

Reference no: EM132649367

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