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

question 60

Short Answer

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? $\begin{array}{lll}&\text { Gain } &\text { loss } \\\text { a. } & \text { Decrease } & \text { Decrease } \\b.&\text { Decrease } & \text { Increase } \\\text { c. } & \text { Increase } & \text { Decrease } \\\text { d. } & \text { Increase } & \text { Increase }\end{array}$

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Definitions:

Unified Modeling Language (UML)

A standardized modeling language used in software engineering to visualize the design of a system.

Graphically

Pertaining to visual representation, especially in the context of data visualization, user interfaces, or graphical elements in applications.

Shallow Copying

The process of creating a new object and copying the field values of an existing object into it without recursively copying objects referenced by the fields.

Reference Variable

A variable in programming that holds a reference (or address) to an object rather than the object's value itself.