- Answer Each Of The Following Independent Questions 1 Southeast Airlines Purchased An Aircraft On January 1 2015 At A 1 (57.43 KiB) Viewed 34 times
1. Southeast Airlines purchased an aircraft on January 1, 2015, at a cost of $38,800,000. At time of purchase,
the estimated useful life and estimated residual value of the aireraf were 16 years and S2,000,000
respectively. On January 1, 2021 the airline estimated that the remaining useful life of the aircrad to be 8
years and the residual value to be $1,500,000. The Company uses the straight-line method. No depreciation
expense had been recorded in 2021. Determine the amount of Depreciation Expense for 2021. Clearly
show calculations for numbers that are not given (6 points).
2. Tanner Company purchased equipment on June 1, 2018 for $900,000. I is estimated thal the equipment
will have a $20,000 residual value at the end of its 8-year useful life. Ir is also estimated that the aquipmant
will produce 110,000 units over its 8-year life. Assuming 6,000 units of product are produced in 201 and
15,500 units are produced in 2019, what is the net carrying (book) value of the equipment at December
31, 2019 according to the units-of production depreciation method? Clearly show calculations for
numbers that are not given (5 points).
Answer each of the following independent questions. 1. Southeast Airlines purchased an aircraft on January 1, 2015, at a cost of $38,800,000. At time of purchase, the estimated useful life and estimated residual value of the aircraft were 16 years and $2,000,000 respectively. On January 1, 2021 the airline estimated that the remaining useful life of the aircraft to be 8 years and the residual value to be $1,500,000. The Company uses the straight-line method No depreciation expense had been recorded in 2021. Determine the amount of Depreciation Expense for 2021. Clearly show calculations for numbers that are not given (6 points). 2. Tanner Company purchased equipment on June 1, 2018 for $900,000. It is estimated that the equipment will have a $20,000 residual value at the end of its 8-year useful life. It is also estimated that the equipment will produce 110,000 units over its 8-year life. Assuming 6,000 units of product are produced in 2018 and 15,500 units are produced in 2019, what is the net carrying (book) value of the equipment al December 31, 2019 according to the units-of production depreciation method? Clearly show calculations for numbers that are not given (5 points).