(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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The control and ownership of property, enterprises, and means of production by individuals or private companies, not the state.

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