On January 1, 2016, Horton Inc. sells a machine for $22,200. The machine was originally purchased on January 1, 2014 for $42,500. The machine was estimated to have a useful life of 5 years and no residual value. Horton uses straight-line depreciation.

b.

If the company had used the double-declining balance method, how would this have affected any gain or loss on the sale?

	Increased the Loss or Decreased the Gain
	Increased the Loss or Increased the Gain
	Decreased the Loss or Increased the Gain
	Decreased the Loss or Decreased the Gain