When a Capital Asset with a 5-Year Estimated Useful Life

question 7

Multiple Choice

When a capital asset with a 5-year estimated useful life is sold during the second year, how would the use of the SYD method of amortization, instead of the straight-line method, affect the gain or loss on the sale? $\begin{array}{|l|l|l|}\hline &\text { Gain } & \text { Loss } \\\hline1& \text { No effect } & \text { No effect } \\\hline 2&\text { Increase } & \text { Increase } \\\hline 3&\text { Decrease } & \text { ncrease } \\\hline4& \text { nncrease } & \text { Decrease } \\\hline\end{array}$

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

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Definitions:

Role Ambiguity

A situation in which an individual lacks clear information about job expectations, their role within the organization, or the scope of their responsibilities.

Work Unit

A functional component within an organization, typically made up of team members working together towards common objectives.

Representing Category

The act of exemplifying or embodying the characteristics of a broader class or group.

External Behavior

Actions or reactions observed from an individual that occur outside of their internal cognitive processes, visible to others.