Which of the following statements is false?(When DB and switching DB are compare

Question

Which of the following statements is false?(When DB and switching DB are compared, assume that they have the same n and alpha parameters. Assume that SL depreciation has zero salvage value.) Double-declining balance switching to straight-line depreciation defines an equal amount of depreciation in the first year when compared to double-declining balance depreciation. ODouble-declining balance switching to straight-line depreciation defines a lesser book value at the end of the recovery period than double-declining balance depreciation. O Double-declining balance switching to straight-line depreciation defines a lesser amount of depreciation in the final year than straight-line depreciation. Double-declining balance switching to straight-line depreciation defines a book value at the end of the recovery period that is greater than that of straight-line depreciation.

Explanation / Answer

1st- Statement is true as both DDB and DDB to SLM have equal depreciation in first year

2nd statement is False as book value for all three methods at end of period is same

3rd statement is true as DDB with SLM has more depreciaton in earlier year

4th statement is false as book value at end of recovery period is same for all methods

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