Hill Inc.purchased an asset on January 1,2019.Hill chose an accelerated depreciation method to depreciate the asset.Which of the following is correct if Hill would have chosen the straight-line depreciation method instead?

Question

Quizplus · Accepted Answer

Under the straight-line depreciation method, depreciation expense is spread evenly over the useful life of the asset, resulting in lower annual depreciation expense compared to accelerated depreciation methods, which front-load the expense. Therefore, if Hill Inc. had chosen the straight-line method instead of an accelerated method, the depreciation expense in 2019 would have been lower.

Hill IncPurchased an Asset on January 1,2019