A company that uses the straight-line method of depreciation experiences the following independent items: Increases a

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 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. Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...