Answer the following questions concerning the choice of depreciation method for an asset that has a 10-year life. Select your answer by clicking in the drop down box to the right of each question.

Straight line or doubling declining balance

Which depreciation method will show the highest amount of income tax expense in the first year of owning the asset?

Which depreciation method will show the higher book value of the asset at the end of the first year?

Which depreciation method would most likely result in a gain if the asset was sold at the end of the third year of ownership?