Question
Which of the following statements is false? (When DB and switching DB are compared, assume that they have the same n and alpha parameters. Assume
Which of the following statements is false? (When DB and switching DB are compared, assume that they have the same n and alpha parameters. Assume that SL depreciation has zero salvage value.)
A) Double-declining balance switching to straight-line depreciation defines a book value at the end of the recovery period that is greater than that of straight-line depreciation.
B) Double-declining balance switching to straight-line depreciation defines a lesser book value at the end of the recovery period than double-declining balance depreciation.
C) Double-declining balance switching to straight-line depreciation defines a lesser amount of depreciation in the final year than straight-line depreciation.
D) Double-declining balance switching to straight-line depreciation defines an equal amount of depreciation in the first year when compared to double-declining balance depreciation.
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