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Blocher Company is evaluating the following methods of accounting for depreciation of long-lived assets and inventory:
Depreciation: straight-line; double-declining balance (DDB)Inventory: first in, first out (FIFO); last in, first out (LIFO)
Question 1: Assuming a deflationary environment (prices are falling), which of the following combinations will result in the highest net income in year 1?
Group of answer choices
A) DDB; FIFO.
B) Straight-line; LIFO.
C) Straight-line; FIFO.
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