On January $1,$ Year $2,$ Webb Construction Company overhauled four cranes resulting in a slight increase in the life of the cranes. Such

overhauls occur regularly at two$-$year intervals and have been treated as maintenance expense in the past. Management is

considering whether to capitalize this year's $$24,080$ cash cost in the Cranes asset account or to expense it as a maintenance

expense. Assume that the cranes have a remaining useful life of two years and no expected salvage value. Assume straight$-$line

depreciation.

Required

a$.$ Determine the amount of additional depreciation expense Webb would recognize in Year $2$ and Year $3$ if the cost were capitalized in

the Cranes account.

b$.$ Determine the amount of expense Webb would recognize in Year $2$ and Year $3$ if the cost were recognized as maintenance

expense.

c$.$ Determine the effect of the overhaul on cash flow from operating activities for Year $2$ and Year $3$ if the cost were capitalized and

expensed through depreciation charges.

Note: Cash outflows should be indicated with a minus sign.

d$.$ Determine the effect of the overhaul on cash flow from operating activities for Year $2$ and Year $3$ if the cost were recognized as

maintenance expense.

Note: Cash outflows should be indicated with a minus sign.