The total amount of additional depreciation to be recognized by SBC over the remaining life of the assets is:

Question

Quizplus · Accepted Answer

The total additional depreciation to be recognized by SBC over the remaining life of the assets is $4.5 million. This is because the fair value of the assets is $15 million less than their book value, and the remaining life of the assets is 5 years. Therefore, the additional depreciation expense that SBC will need to recognize each year is $15 million / 5 years = $3 million.

The Total Amount of Additional Depreciation to Be Recognized by SBC