Airco owns several aircraft and its balance sheet indicated the following amounts for its aircraft accounts at the end of 2009 and 2008:

Required:
1. Assume that Airco did not sell any aircraft during 2009. Determine the amount of depreciation expense for 2009 and the cash spent for aircraft purchases in 2009.
2. If Airco sold for cash aircraft that cost $4,100,000 with accumulated depreciation of $3,500,000, producing a gain of $300,000, determine
(a) The amount of depreciation expense,
(b) The cash paid for aircraft purchases in 2009 and
(c) The cash inflow from the sale ofaircraft.

Transcribed Image Text:

12/31/2009 12/31/2008 $28,500,000 $21,750,000 10,100,000 Equipment, aircraft ccumulated depreciation Book value 11,900,000 $16,600,000 $11,650