Which method is the most favourable to production organization liable for taxation?

Question

Which of the following methods are considered as most favourable to production organization liable for taxation?

1. Straight line method of depreciation
2. Declining balance method of depreciation
3. Sum of the year's digits method of depreciation
4. Sinking fund method of depreciation

Select the correct answer using the codes given below:

1. 1 and 2
2. 2 and 3
3. 3 and 4
4. 4 and 1