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At the start of the current year, SBC Corporation purchased 2 5 % of Sky Tech Incorporated for $ 4 8 million. At the time

At the start of the current year, SBC Corporation purchased 25% of Sky Tech Incorporated for $48 million. At the time of purchase, the carrying value of Sky Tech's net assets was $70 million. The fair value of Sky Tech's depreciable assets was $10 million in excess of their book value. For this year, Sky Tech reported a net income of $70 million and declared and paid $10 million in dividends.
The total amount of additional depreciation to be recognized by SBC over the remaining life of the assets is:
Multiple Choice
$2.5 million.
$10 million.
$20 million.
None of the other answer choices are correct.

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