3011 company in this line of business) would reduce the depreciable base and thus reduce periodic depreciation expense. The effect would be to increase net income or re-duce net losses. Extending the useful lives of the trucks would result in a smaller depre-ciation charge against income each period. 2. Newly-assigned, arbitrary salvage values would result in a smaller depreciable base and thus lower amounts of depreciation expense and would increase net income or decrease net losses.