B. 3 years D. 2 years 21. Overstating ending inventory will overstate all of the following except A. Assets. C. Net income. B. Cost of goods sold. D. Owner's equity. 22. What would be the depreciation expense using double -declining-balance to comput the expense for year 2 of a machine costing 15,000 when residual value is 5,00 and useful life is 5 years? A. 5,000 C. 3,600 B. 6,000 D. 3,000

21. Overstating ending inventory will overstate all of the following except:B. Cost of goods sold.Explanation: Overstating ending inventory will result in an understatement of the cost of goods sold, as the cost of goods sold is calculated as beginning inventory plus purchases minus ending inventory. Therefore, overstating ending inventory will not overstate the cost of goods sold.22. What would be the depreciation expense using double-declining-balance to compute the expense for year 2 of a machine costing 5,000 and useful life is 5 years?C. 6,000 ( 9,000 ( 6,000). Therefore, the depreciation expense for the second year is 9,000 x 40%).