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ABC Company purchased a piece of machinery in May, 2001. The company depreciates all of its assets using the double-declining balance depreciation method. However, when
ABC Company purchased a piece of machinery in May, 2001. The company depreciates all of its assets using the double-declining balance depreciation method. However, when recording depreciation for 2001, the company accountant made a mistake and calculated depreciation on the machine using the straight-line method. What is the effect of this error on the company's 2001 net income and on the company's total assets at December 31, 2001?
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Is the answer option E?
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