At the start of the current year, SBC Corp purchased 25% of Sky Tech Inc. for $52 million. At the time of purchase, the carrying value of Sky Tech's net assets was $86 million. The fair value of Sky Techs depreciable assets was $10 million in excess of their book value For this year, Sky Tech reported a net income of $86 million and declared and paid $10 million in dividends.
The total amount of additional depreciation to be recognized by SBC over the remaining life of the assets is:
a. $24 million.
b. $2.5 million.
c. $10 million.
d. None of these answer choices is correct.
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