On January 1, 20X6, Alpha Airlines purchased an airplane for $41.250.000. Alpha Airlines expects the plane to remain useful for 10 years and to have a residual value of $3.050.000 Alpha Alines uses the straight-line method to depreciate its airplanes. Alpha Alrlines flew the plane for 4 years and sold it on January 1, 20Y0. for $8.600.000 1. Compute accumulated depreciation on the airplane at January 1. 20YO (same as December 31, 20X9). 2. Record the sale of the plane on January 1, 20YO. 1. Compute accumulated depreciation on the airplane at January 1, 20YO (same as December 31, 20X9). (Round your final answer to the nearest whole dollar) The accumulated depreciation is S 2. Record the sale of the plane on January 1, 20Y0. (Record debits first, then credits Explanations are not required. Leave unused cells blank) Journal Entry Date Accounts Debit Credit 20Y0 Jan 1

On January 1, 20X6, Alpha Airlines purchased an airplane for $41.250.000. Alpha Airlines expects the plane to remain useful for 10 years and to have a residual value of $3.050.000 Alpha Alines uses the straight-line method to depreciate its airplanes. Alpha Alrlines flew the plane for 4 years and sold it on January 1, 20Y0. for $8.600.000 1. Compute accumulated depreciation on the airplane at January 1. 20YO (same as December 31, 20X9). 2. Record the sale of the plane on January 1, 20YO. 1. Compute accumulated depreciation on the airplane at January 1, 20YO (same as December 31, 20X9). (Round your final answer to the nearest whole dollar) The accumulated depreciation is S 2. Record the sale of the plane on January 1, 20Y0. (Record debits first, then credits Explanations are not required. Leave unused cells blank) Journal Entry Date Accounts Debit Credit 20Y0 Jan 1

Name: On January 1, 20X6, Alpha Airlines purchased an airplane for $41,250.
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Description: On January 1, 20X6, Alpha Airlines purchased an airplane for $41,250.000 Alpha Airlines expects the plane to remain useful for 10 years and to have a residual value of $3.050,000. Alpha Airlines uses thestraight-line method to depreciate its airplan

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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Concept explainers

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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Question

On January 1, 20X6, Alpha Airlines purchased an airplane for $41,250.000 Alpha Airlines expects the plane to remain useful for 10 years and to have a residual value of $3.050,000. Alpha Airlines uses the
straight-line method to depreciate its airplanes. Alpha Airlines flew the plane for 4 years and sold it on January 1, 20Y0, for $8.600.000.
1. Compute accumulated depreciation on the airplane at January 1. 20YO (same as December 31, 20X9).
2. Record the sale of the plane on January 1, 20YO.
1. Compute accumulated depreciation on the airplane at January 1, 20YO (same as December 31, 20X9). (Round your final answer to the nearest whole dollar)
The accumulated depreciation is S
2. Record the sale of the plane on January 1, 20Y0. (Record debits first, then credits Explanations are not required. Leave unused cells blank)
Journal Entry
Date
Accounts
Debit
Credit
20Y0
Jan 1
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