Problem 6-2 On January 1, 2016, Eastlake Power Company overhauled four turbine engines that generate power for 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 $112,500 cash cost in the engine asset account (fixed assets on the Balance Sheet) or to expense it as a maintenance expense. Assume that the engines have a remaining useful life of two years and no expected salvage value. Also assume straight-line depreciation. REQUIRED Determine the amount of additional depreciation expense Eastlake would recognize in 2016 and 2017 if the cost were capitalized (recorded to the balance sheet) in the Engine account or Fixed Assets account. a. b. Determine the effect of the overhaul on cash flow from operating activities for 2016 and 2017 if the cost were capitalized and expensed through depreciation charges. c. Determine the amount of expense Eastlake would recognize in 2016 and 2017 if the cost were d. Determine the effect of the overhaul on cash flow from operating activities for 2016 and 2017 if the cost were recognized as maintenance expense