Problem regarding straight-line rate


When calculating declining balance depreciation, the straight-line rate was used instead of double the straight-line rate. In the first year of ownership, this error would cause:

A) the period's net income will be understated.

B) the period end assets will be understated.

C) the period's net income will be overstated.

D) None of these are correct.

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Accounting Basics: Problem regarding straight-line rate
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