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 depreciation expense could be due to different residual values. Residual value is the estimated value of the asset at the end of its useful life, and it affects the amount of depreciation expense calculated using the straight-line method. Therefore, if the company is using different residual values than the expected values, it would affect the depreciation expense.

You Have Determined That a Company Uses Straight Line Depreciation