a financial analyst is studying the income statement effect of two alternative depre 1557148

A financial analyst is studying the income statement effect of two alternative depreciation methods for a recently acquired piece of equipment. She gathers the following information about the equipment’s expected production life and use:

 

Compared with the units-of-production method of depreciation, if the company uses the straight-line method to depreciate the equipment, its net income in Year 1 will most likely be:

A. lower.

B. higher.

C. the same.