At the End of the First Year of an Asset's

question 295

Multiple Choice

At the end of the first year of an asset's life,the declining-balance depreciation:

• A)causes an asset to be carried at a higher book value than that computed using the straight-line method.
• B)causes an asset to be carried at a lower book value than that computed using the straight-line method.
• C)causes an asset to be carried at the same book value as that computed using the straight-line method.
• D)cannot be used if the resulting book value will be significantly different from that which would result from using the straight-line method.

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