The amount of net income will be higher in case of straight line amortization as compared to double declining method.
BT: Comprehension

Question

Quizplus · Accepted Answer

This statement is false. Double declining method results in higher amortization expense in the earlier years of an asset's life, which in turn results in lower net income. Therefore, straight line amortization method will have lower net income as compared to double declining method.

The Amount of Net Income Will Be Higher in Case