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A company uses the straight line method of depreciation.

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A company uses the straight line method of depreciation.

Which TWO of the following are a possible explanation for a profit on disposal?

A.

The actual useful life was less than estimated

B.

The actual useful life was more than estimated

C.

The estimated residual value was lower than actual

D.

The estimated residual value was higher than actual

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TESTED 02 Aug 2025