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?

$\begin{array}{lll}
&\text { Gain } &\text~~~~~~~~~~~~ { loss } \ \hline
\end{array}$

Question

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?

$\begin{array}{lll}
&\text { Gain } &\text~~~~~~~~~~~~ { loss } \ \hline
\end{array}$

Quizplus · Accepted Answer

The Answer of 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?

$\begin{array}{lll}
&\text { Gain } &\text~~~~~~~~~~~~ { loss } \ \hline
\end{array}$

A Plant Asset with a Five-Year Estimated Useful Life and No