A company purchases a machine in 2016 and ignores the estimated salvage value in computing annual depreciation. The 2016 Net Income will be overstated given the use of which method(s)?

Select one:

a.

Units-of-Output method, but not Straight-line method

b.

Straight-line method, but not Units-of-Output method

c.

Neither Straight-line method nor Units-of-Output method

d.

Both Straight-line method and Units-of-Output method