River Company wants to minimize the amount of time and effort its bookkeepers spend on calculating depreciation. Since River has not been profitable, taxes are not an issue, but maximizing the profit and minimizing reported losses are major concerns. Recommend a course of action for River. Support your recommendation
River should use the straight-line method to minimize the time spent in calculating depreciation. This method also creates the smallest expense in the early years of a plant asset's life and reports the largest amount of net income to please stockholders.
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