Declining Balance: Use 150% declining balance for Asset A. Question: What are the depreciation costs for Asset A for year 1 and year 2? Change in Estimate Example: Asset cost $80,000 and we estimated salvage value of $6,000 and a 10 year useful life. We used straight line. Now in year 4 we estimate a total useful life of 15 years. b. Now in year 4 we estimate salvage value of 0. a. Impairment Example: Asset had historical cost of $100,000, estimated salvage value of $5,000, and an estimated useful life of 10 years. We used straight line and are now done with year 4. FMV is now $20,000. We estimate that net future cash flows will be $20,000 in year 5, $20,000 in year 6, and then we will sell it for $10,000. Question: Test whether there is an impairment? If yes, how much is the impairment loss