In 20x2,a Firm Changed from the Straight-Line (SL)method of Depreciation

question 147

Multiple Choice

In 20x2,a firm changed from the straight-line (SL) method of depreciation to double declining balance (DDB) to conform to long-standing industry practice.The firm's 20x1 and 20x2 comparative financial statements will reflect which method or methods.

• A) Choice 1
• B) Choice 2
• C) Choice 3
• D) Choice 4

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Definitions:

Gasoline Tax

A tax imposed by governments on the sale of gasoline, typically used to fund transportation-related projects.

Proportional Tax

A tax system where the tax rate remains constant regardless of the amount subject to tax, resulting in taxpayers paying the same percentage of their income regardless of the income level.

Higher-income Persons

Individuals or households that have an income significantly above the average for a certain society or area.

Taxes

Mandatory financial charges imposed by a government on individuals, businesses, and transactions to fund public expenditures.