(CMA Adapted, Jun 90 #27) When a Fixed Plant Asset $\begin{array}{|l|l|}\hline \text { Gain } & \text { Loss } \\\hline\end{array}$

Multiple Choice

(CMA adapted, Jun 90 #27) When a fixed plant asset with a five-year estimated useful life is sold during the second year, how would the use of a double declining balance method of depreciation instead of the straight-line method affect the gain or loss on the sale of the fixed plant asset? $\begin{array}{|l|l|}\hline \text { Gain } & \text { Loss } \\\hline\end{array}$

A) Increase Increase
B) Increase Decrease
C) Decrease Increase
D) Decrease Decrease
E) cannot be determined by the information provided.