Hill Inc.purchased an asset on January 1,2019.Hill chose an accelerated depreciation method to depreciate the asset.Which of the following is correct if Hill would have chosen the straight-line depreciation method instead?

A) Depreciation expense would have been lower in 2019.
B) The book value of the asset would have been lower at the end of 2019.
C) Net income would have been lower during 2019.
D) The accumulated depreciation balance would have been higher at the end of 2019.

Question

Raheasylvia Murry · Accepted Answer

Final Answer : A, Explanation :  Under the straight-line depreciation method, depreciation expense is spread evenly over the useful life of the asset, resulting in lower annual depreciation expense compared to accelerated depreciation methods, which front-load the expense. Therefore, if Hill Inc. had chosen the straight-line method instead of an accelerated method, the depreciation expense in 2019 would have been lower.

Definitions

Learning Objectives

Learning Objectives

Related questions