With respect to depreciation methods, which of the following is true?
I. Accelerated depreciation methods lead to higher depreciation expense over time.
II. The Straight-line method causes higher taxes in later years.
III. Accelerated methods are preferred for tax reasons.
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A. B. C. D.A
Accelerated methods cause depreciation expense to decrease over time. In later years, the straight- line method leads to higher depreciation compared to accelerated methods and hence, leads to lower taxes.