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What the tax payments in year one will be

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Question 1: Trina Hopkinton, an analyst for Corby Optical, is studying the income statement effect of two alternative depreciation methods for a piece of equipment it just purchased. The equipment has four years of useful life. Compared with the straight-line method of depreciation, if the company uses the double-declining balance (DDB) method, its tax payments in year one will be:

Group of answer choices

Option a. the same.

Option b. lower.

Option c. higher.

Reference no: EM132489909

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