Answer:
The total amount of additional depreciation to be recognized by SBC over the remaining life of the assets is $2.5 million. The right answer is b.
Explanation:
According to the given data we have the following:
SBC Corp purchased 25% of Sky Tech Inc. for $52 million.
The fair value of Sky Techs depreciable assets was $10 million in excess of their book value
Therefore, The total amount of additional depreciation to be recognized by SBC over the remaining life of the assets is calculated by the following formula:
Total amount of additional depreciation to be recognized= $10 million * 25%
= $2.5 million