In 2009 Lufthansa, the German national airline, reported that it depreciated its aircraft: A) Over 15 years on straight-line basis, with an estimated residual value 12 percent of initial ce B) Over 10 years on a straight-line basis, with estimated residual value 18 percent of initial cos NOTE: A) for students which last number of their NIM is odd number. B) for students which last number of their NIM was even number. Lufthansa reported in its 2009 Annual Report The Total Cost its aircraft at the beginning of 2009 17,918 m, and accumulated depreciation was € 10,547 m. Marginal tax rate 25%. Air France-KLM reported that its aircraft depreciation was also estimated using the straight-line met
In 2009 Lufthansa, the German national airline, reported that it depreciated its aircraft: A) Over 15 years on straight-line basis, with an estimated residual value 12 percent of initial ce B) Over 10 years on a straight-line basis, with estimated residual value 18 percent of initial cos NOTE: A) for students which last number of their NIM is odd number. B) for students which last number of their NIM was even number. Lufthansa reported in its 2009 Annual Report The Total Cost its aircraft at the beginning of 2009 17,918 m, and accumulated depreciation was € 10,547 m. Marginal tax rate 25%. Air France-KLM reported that its aircraft depreciation was also estimated using the straight-line met
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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