When calculating declining balance depreciation,the straight-line rate was used instead of double the straight-line rate.In the first year of ownership,this error would cause:

Question

Quizplus · Accepted Answer

Using the straight-line rate instead of double the straight-line rate results in lower depreciation expense in the first year, causing the period end assets to be overstated.

When Calculating Declining Balance Depreciation,the Straight-Line Rate Was Used Instead