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Janua 2020, ransportati expects the plane to remain useful for five years (7,000,000 miles) and to have QuickAir expects to fly the plane 925,000 miles the first year, 1,300,000 miles e ourth years, and 2,175,000 miles the last year.

Janua 2020, ransportati expects the plane to remain useful for five years (7,000,000 miles) and to have QuickAir expects to fly the plane 925,000 miles the first year, 1,300,000 miles e ourth years, and 2,175,000 miles the last year.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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K On January 1, 2020, QuickAir Transportation Company purchased a used aircraft at a cost of $52,400,000 QuickAir expects the plane to remain useful for five years (7,000,000 miles) and to have a residual value of $6,400,000 QuickAir expects to fly the plane 925,000 miles the first year, 1,300,000 miles each year during the second, third, and fourth years, and 2,175,000 miles the last year. Read the requirements Using the straight-line method, depreciation is $ 9,200,000 for 2020 and $9,200,000 for 2021 b. Units-of-production method (Round the depreciation per unit of output to two decimal places to compute your final answers.) Using the units-of-production method, depreciation is $ 6,077,250 for 2020 and $ 8,541,000 for 2021. c. Double-declining balance method Using the double-declining-balance method, depreciation Book Value: CELE 2. Show the airplane's book value at the end of the first year under each method Less Book Value Etext pages Get more help $ 20,960,000 for 2020 and $ 12,576,000 for 2021 Straight-Line Clear all Check answer
Transcribed Image Text:K On January 1, 2020, QuickAir Transportation Company purchased a used aircraft at a cost of $52,400,000 QuickAir expects the plane to remain useful for five years (7,000,000 miles) and to have a residual value of $6,400,000 QuickAir expects to fly the plane 925,000 miles the first year, 1,300,000 miles each year during the second, third, and fourth years, and 2,175,000 miles the last year. Read the requirements Using the straight-line method, depreciation is $ 9,200,000 for 2020 and $9,200,000 for 2021 b. Units-of-production method (Round the depreciation per unit of output to two decimal places to compute your final answers.) Using the units-of-production method, depreciation is $ 6,077,250 for 2020 and $ 8,541,000 for 2021. c. Double-declining balance method Using the double-declining-balance method, depreciation Book Value: CELE 2. Show the airplane's book value at the end of the first year under each method Less Book Value Etext pages Get more help $ 20,960,000 for 2020 and $ 12,576,000 for 2021 Straight-Line Clear all Check answer
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