Question
A fixed asset with a five-year estimated useful life and no scrap value is sold at the end of the second year of its useful
A fixed asset with a five-year estimated useful life and no scrap value is sold at the end of the second year of its useful life. How would using the straight-line method of depreciation instead of the double-declining balance method of depreciation affect a gain or loss on the sale of the plant asset?
A gain would be greater or a loss would be less using straight-line depreciation. | ||
A gain would be less or a loss would be greater using straight-line depreciation. | ||
A gain would be less or a loss would be less using straight-line depreciation. | ||
Neither the gain or loss would be different using straight-line depreciation instead of double-declining-balance method. |
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