问

问题如下：

A company whose objective is to maximize income spent $1,000,000 for a machine with two significant components, as indicated in the table. The machine is expected to have an overall useful life of 10 years, and the company uses the straight-line method of depreciation.

The depreciation expense for the first year computed under International Financial Reporting Standards (IFRS) compared with US GAAP, will most likely be: (

选项：

A.$50,000 higher. B.$50,000 lower. C.the same.

解释：

Under IFRS, the company must use the component method of depreciation expense:($500,000/10 years) + ($500,000/5 years) = $150,000 per year for the first five years.Under US GAAP, the company would not use component deprecation because they would prefer to minimize depreciation expense in order maximize income.$1,000,000/10 years = $100,000 per yearUnder IFRS, depreciation in the first year is $50,000 higher.