S10-5 Calculating depreciation by three methods-first year only At the beginning of the year, JetQuick Airlines purchased a used Boeing jet for $43 million. JetQuick expects the plane to remain useful for five years (4 million kilometres) with a residual value of $7 million. JetQuick expects the plane to be flown for 1.4 million kilometres the first year. Requirements Calculate JetQuick's first-year depreciation on the plane using the following methods: 1 a straight line b units of production c reducing balance (use 2 x the SL rate). 2 Show the plane's carrying amount at the end of the first year under each depreciation method.

S10-5 Calculating depreciation by three methods-first year only At the beginning of the year, JetQuick Airlines purchased a used Boeing jet for $43 million. JetQuick expects the plane to remain useful for five years (4 million kilometres) with a residual value of $7 million. JetQuick expects the plane to be flown for 1.4 million kilometres the first year. Requirements Calculate JetQuick's first-year depreciation on the plane using the following methods: 1 a straight line b units of production c reducing balance (use 2 x the SL rate). 2 Show the plane's carrying amount at the end of the first year under each depreciation method.

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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