You have determined that a company uses straight line depreciation. However, the depreciation expense is different than you expected it to be. What could be the reason for this difference?
A)different residual values
B)same residual values
C)same useful lives
D)Cannot be determined.

Question

Quizplus · Accepted Answer

The difference in the depreciation expense could be due to the company using different residual values than what was expected. This means that the company is assuming the asset will have a different value at the end of its useful life, which affects the amount of depreciation expense each year.

You Have Determined That a Company Uses Straight Line Depreciation