Calculating declining balance depreciation


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

a) the periods net income will be understated

b) the period end assets will be understated

c) the periods net income will be overstated

d) none of these are correct

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Accounting Basics: Calculating declining balance depreciation
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