- 15 Which of the following statements about involuntary conversions is false? ed a out of Select one: a. The gain or loss from an involuntary conversion is reported in other income and expense on the income statement. 69 question b. None of these answer choices are false. C. An involuntary conversion may result from condemnation or fire. d. The gain or loss from an involuntary conversion should not be recognized when the company reinvests in replacement assets. en 16 Use of the double-declining balance method red d out of Wag question Select one: O a. results in a decreasing charge to depreciation expense. O b. means the book value should not be reduced below residual value. c. means residual value is not deducted in computing the depreciation base. d. All of these answer choices are correct