Reference no: EM132954244

Problem 1: In comparing the straight line and double declining methods of depreciation, which of the statements is true in the first year of use of an operating asset?

Option 1: creates the larger tax savings.

Option 2: Double-declining-balance depreciation creates the larger expense, while straight-line depreciation

Option 3: Straight-line depreciation creates both the larger expense and the larger tax savings

Option 4: Double-declining-balance depreciation creates both the larger expense and the larger tax savings

Option 5: Straight-line depreciation creates the larger expense, while double declining balance depreciation creates the larger tax savings.