On January 1, Year 1, Dinwiddie Company purchased a car that cost $45,000. The car had an expected useful life of 6 years and a $10,000 salvage value. Based on this information alone:
A) the total amount of depreciation expense recognized over the six-year useful life will be greater under the double-declining-balance method than the straight-line method.
B) the amount of depreciation expense recognized in Year 4 would be greater if Dinwiddie depreciates the car under the straight-line method than if the double-declining-balance method is used.
C) at the end of Year 3, the amount in the accumulated depreciation account will be less if the double-declining-balance method is used than it would be if the straight-line method is used.
D) None of these statements is true.
Correct Answer:
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