A plant asset with a five-year estimated useful life and no, Ask an Expert

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A plant asset with a five-year estimated useful life and no residual value is sold at the end of the second year of its useful life. How would using the sum-of-the-years'-digits method of depreciation instead of the double-declining balance method of depreciation affect a gain or loss on the sale of the plant asset?

Gain Loss

a. Decrease Decrease

b. Decrease Increase

c. Increase Decrease

d. Increase Increase

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M995090

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