Refer to Falling Leaves Lawn Care. The company is comparing the straight-line and double-declining-balance depreciation methods. Of these two methods, which method creates the larger expense and larger tax savings in 2013?
A) Straight-line depreciation creates the larger expense, while double-declining-balance depreciation creates the larger tax savings.
B) Straight-line depreciation creates both the larger expense and the larger tax savings.
C) Double-declining-balance depreciation creates both the larger expense and the larger tax savings.
D) Double-declining-balance depreciation creates the larger expense, while straight-line depreciation creates the larger tax savings.
Correct Answer:
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