Which method use the net income will be understated given

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Problem 1: A company purchases a machine in 2016 and ignores the estimated salvage value in computing annual depreciation. The 2016 Net Income will be understated given the use of which method(s)?

Select one:

a. Both Double-Declining-Balance method and Units-of-Output method
b. Units-of-Output method, but not Double-Declining-Balance method
c. Double-Declining-Balance method, but not Units-of-Output method
d. Neither Double-Declining-Balance method nor Units-of-Output method

Reference no: EM132837880

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