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A plant asset with a five-year estimated useful life and no residual value is sold at the end of the second year of its useful
A plant asset with a five-year estimated useful life and no residual value is sold at the end of the second year of its useful life. How would using the straight-line method of depreciation versus the double-declining balance method of depreciation affect a gain on the sale of the plant asset?
Straight-line results in a higher gain
Impossible to determine from the information given
The gain would be the same under either method
Double-declining balance results in a higher gain
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