Bubba Inc.purchased an asset on January 1,20A.Bubba chose the straight-line method to depreciate the asset.Had Bubba chosen an accelerated depreciation method,which of the following would be false?
A)Depreciation expense would be greater in 20A.
B)The book value of the asset would be less at the end of 20A.
C)Profit would be less in 20A.
D)Depreciation expense would be the same each year.

Question

Quizplus · Accepted Answer

Under an accelerated depreciation method, depreciation expense is higher in the earlier years and decreases over time, so it would not be the same each year.

Bubba IncPurchased an Asset on January 1,20A