hard · Financial Accounting assets

Following a $2,000,000 impairment of a manufacturing facility (long-lived asset), what happens to the depreciation expense in subsequent years?

1. Depreciation expense will increase in later years to 'catch up' for the value already lost
2. Depreciation expense ceases entirely once the asset has been impaired
3. Depreciation expense remains unchanged from before impairment, to preserve consistency
4. Depreciation expense will decrease because the asset's depreciable base has been reduced

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