(CMA Adapted, Jun 90 #27) When a Fixed Plant Asset $\begin{array}{|l|l|}\hline \text { Gain } & \text { Loss } \\\hline\end{array}$

question 26

Multiple Choice

(CMA adapted, Jun 90 #27) When a fixed plant asset with a five-year estimated useful life is sold during the second year, how would the use of a double declining balance method of depreciation instead of the straight-line method affect the gain or loss on the sale of the fixed plant asset? $\begin{array}{|l|l|}\hline \text { Gain } & \text { Loss } \\\hline\end{array}$

• A)Increase Increase
• B)Increase Decrease
• C)Decrease Increase
• D)Decrease Decrease
• E)cannot be determined by the information provided.

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Definitions:

Taney

Roger B. Taney, the fifth Chief Justice of the United States, best known for delivering the majority opinion in the Dred Scott v. Sandford case, which declared that African Americans could not be American citizens and negated the Missouri Compromise.

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