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

Question

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The total amount of 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 must recognize each year is $15 million / 5 years = $3 million. Over the remaining life of the assets, SBC must recognize a total of $3 million x 5 years = $15 million in additional depreciation expense.

The Total Amount of Additional Depreciation to Be Recognized by SBC