Straight-line depreciation is used in the first year when double-declining-balance should be used.This error would cause:

Question

Quizplus · Accepted Answer

Using straight-line depreciation instead of double-declining-balance depreciation in the first year will result in less depreciation expense being recognized. This leads to higher net income than if the correct method had been used, because double-declining-balance depreciation would have resulted in a higher expense and thus lower net income.

Straight-Line Depreciation Is Used in the First Year When Double-Declining-Balance