Vivitar purchased a piece of manufacturing equipment for $20…
Vivitar purchased a piece of manufacturing equipment for $200,000 with a five-year useful life and no salvage value. If Vivitar sells the machine for $150,000 at the end of the third year, which of the following statements is true? I: The gain on sale will be larger if Vivitar uses the double-declining balance method versus the straight-line method of depreciation II: The gain on sale will be larger if Vivitar depreciates the machinery using the straight-line method of depreciation versus the double-declining balance method III: The gain on sale will be the same regardless of depreciation method IV: Vivitar will incur more depreciation over the first three years of the useful life using the double-declining balance method versus the straight-line method of depreciation