Question

Airco owns several aircraft and its balance sheet indicated the following amounts for its aircraft accounts at the end of 2011 and 2010:

Required:
1. Assume that Airco did not sell any aircraft during 2011. Determine the amount of depreciation expense for 2011 and the cash spent for aircraft purchases in 2011.
2. If Airco sold for cash aircraft that cost $4,100,000 with accumulated depreciation of $3,825,000, producing a gain of $193,000, determine
(a) The amount of depreciation expense,
(b) The cash paid for aircraft purchases in 2011,
(c) The cash inflow from the disposal of aircraft.


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  • CreatedSeptember 22, 2015
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