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| Blocher Company is evaluating the following methods of accounting for depreciation of long-lived assets and inventory: Depreciation: straight-line; double-declining balance (DDB) Inventory: first in, first out (FIFO); last in, first out (LIFO) Assuming a deflationary environment (prices are falling), which of the following combinations will result in the highest net income in year 1? A)DDB; FIFO. B)Straight-line; LIFO. C)Straight-line; FIFO. |
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