Question

A company that uses the straight-line method of depreciation experiences the following independent items:
• Increases a useful life estimate from 5 years to 8 years
• Pays for maintenance of equipment
• Reduces a salvage value estimate by $10,000
• Pays $50,000 to significantly increase the productivity of an existing fixed asset
• Records an impairment on a fixed asset
Required
Identify whether each independent item would increase, decrease, or not affect depreciation expense for the underlying fixed asset.


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  • CreatedJuly 16, 2015
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