QUESTION 20 A plant asset with a five-year useful life and no residual value is sold at the end of the second year of its useful life. Which of the following statements is correct about using the double-declining balance method of depreciation instead of the straight line method of depreciation for this asset? It increases a possible gain on the sale It increases a possible loss on the sale It does not affect the amount of gain or loss to be recognized on the sale its effect on a possible gain or loss cannot be determined with the given information