Financial statement effects of depreciation-straight-line versus acceler- ated methods Assume that a company chooses an accelerated method of calculat- ing depreciation expense for financial statement reporting purposes for an asset with a five-year life.
Required:
State the effect of accelerated depreciation relative to straight-line depreciation on
a. Depreciation expense in the first year.
b. The asset's net book value after two years.
c. Cash flows from operations (excluding income taxes).