accounting
Answers
a. Company B, who uses double-declining-balance depreciation, will report the highest amount of net income for 2012. b. Company B, who uses double-declining-balance depreciation, will report the lowest amount of net income for 2014. c. Company A, who uses straight-line depreciation, will report the highest book value on the December 31, 2014, balance sheet. d. Company A, who uses straight-line depreciation, will report the highest amount of retained earnings on the December 31, 2015, balance sheet. e. Company B, who uses double-declining-balance depreciation, will report the lowest amount of cash flow from operating activities on the 2014 statement of cash flows because double-declining-balance depreciation has the highest depreciation expense of the three methods.