Two companies in the same industry are similar in all aspects except that the average age of the depreciable assets for Company B is 10 times greater than the average age of the depreciable assets for Company A. Which of the following statements is least likely true Company B will have:（）
A. lower depreciation expense.
B. higher earnings.
C. a competitive advantage in the future.
参考答案：C
解析：
Average age of depreciable assets is useful for two reasons: 1) To assess how competitive the corporation will be going forward (older assets are less efficient). 2) To estimate financing required for major capital expenditures to replace depreciated assets. Company B’s assets are mostly depreciated. Therefore, depreciation expense will be lower and if all other aspects are similar, the earnings and taxes for Company B will be higher.