The amount of net income will be higher in case of straight line depreciation as compared to double declining method.

Question

Quizplus · Accepted Answer

Double declining method results in higher depreciation expense during the initial years of an asset's useful life, which reduces net income. Straight line depreciation method results in equal annual depreciation charges, which means a lower charge in the initial years and may result in higher net income.

The Amount of Net Income Will Be Higher in Case