ABC Company had a fixed asset with a 5-year estimated useful life, was depreciating it using the double declining balance method, and sold it during the second year. If instead, ABC had been using the straight-line method of depreciation, how would this method affect the amount of a gain or loss reported on the sale of the fixed asset? Gain 1. No Effect 2. No effect Loss No Effect Increase Increase 3. Decrease 4. Increase Decrease 5. Increase Increase It would have no effect on the amount of the gain or loss recognized It would have no effect on the gain recognized. It would increase the amount of the loss recognized. It would decrease the amount of the gain recognized and increase the amount of the loss recognized It would increase the amount of the gain recognized and decrease the amount of the loss recognized It would increase the amount of the gain recognized and it would increase the amount of the loss recognized.