On January 1, 2018, Questor Airline purchased a used airplane at a cost of $50,000,000. Questor Airline expects the pl
Posted: Fri Jul 01, 2022 8:51 am
On January 1, 2018, Questor Airline purchased a used airplane at a cost of $50,000,000. Questor Airline expects the plane to remain useful for eight years (5,000,000 miles) and to have a residual value of $5,000,000. Questor Airline expects the plane to be flown 1,200,000 miles the first year and 1,400,000 miles the second year.Read the requirements
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Part 1
Requirement 1a. Compute second-year (2019) depreciation expense on the plane using the straight-line method. Begin by selecting the formula to calculate the company's second-year depreciation expense on the plane using the straight-line method. Then enter the amounts and calculate the depreciation expense for the second year.
Requirement 1b. Compute second-year (2019) depreciation expense on the plane using the units-of-production method.
Before calculating the second-year depreciation expense on the plane using the units-of-production method, calculate the depreciation expense per unit. Select the formula, then enter the amounts and calculate the depreciation expense per unit.
Now, select the formula, enter the amounts and calculate the company's second-year depreciation expense on the plane using the units-of-production method.
Requirement 1c. Compute second-year (2019)
depreciation expense on the plane using the double-declining-balance method.
Begin by selecting the formula to calculate the company's second-year depreciation expense on the plane using the double-declining-balance method. Then enter the amounts and calculate the depreciation expense for the second year.
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diu Calculate the depreciation expense for the second year. Double-declining- = balance depreciation Requirement 2. Calculate the balance in Accumulated Depreciation at the end of the second year for all three methods. Straight-Line Units-of-production Double-declining-balance Depreciation Expense - 2018 Depreciation Expense - 2019 Accumulated Depreciation ending balance
Now, select the formula, enter the amounts and calculate the company's second-year depreciation expense on the plane using the units-of-production method. = x = Units-of-production depreciation Requirement 1c. Compute second-year (2019) depreciation expense on the plane using the double-declining-balance method. Begin by selecting the formula to calculate the company's second-year depreciation expense on the plane using the double-declining-balance method. Then enter the amounts and calculate the depreciation expense for the second year. = = Double-declining- balance depreciation
.Question content area bottom
Part 1
Requirement 1a. Compute second-year (2019) depreciation expense on the plane using the straight-line method. Begin by selecting the formula to calculate the company's second-year depreciation expense on the plane using the straight-line method. Then enter the amounts and calculate the depreciation expense for the second year.
Requirement 1b. Compute second-year (2019) depreciation expense on the plane using the units-of-production method.
Before calculating the second-year depreciation expense on the plane using the units-of-production method, calculate the depreciation expense per unit. Select the formula, then enter the amounts and calculate the depreciation expense per unit.
Now, select the formula, enter the amounts and calculate the company's second-year depreciation expense on the plane using the units-of-production method.
Requirement 1c. Compute second-year (2019)
depreciation expense on the plane using the double-declining-balance method.
Begin by selecting the formula to calculate the company's second-year depreciation expense on the plane using the double-declining-balance method. Then enter the amounts and calculate the depreciation expense for the second year.
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- On January 1 2018 Questor Airline Purchased A Used Airplane At A Cost Of 50 000 000 Questor Airline Expects The Pl 1 (14 KiB) Viewed 52 times
Now, select the formula, enter the amounts and calculate the company's second-year depreciation expense on the plane using the units-of-production method. = x = Units-of-production depreciation Requirement 1c. Compute second-year (2019) depreciation expense on the plane using the double-declining-balance method. Begin by selecting the formula to calculate the company's second-year depreciation expense on the plane using the double-declining-balance method. Then enter the amounts and calculate the depreciation expense for the second year. = = Double-declining- balance depreciation