hard · Financial Accounting

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 to 'catch up' for the lost value
2. Depreciation expense ceases entirely because the asset has been impaired
3. Depreciation expense remains the same to maintain consistency
4. Depreciation expense will decrease because the asset's depreciable base has been reduced

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