Question: In August 2016 Heavy lift Helicopters Ltd purchased a new helicopter

In August 2016, Heavy-lift Helicopters Ltd. purchased a new helicopter for its logging and heavy lift operations at a cost of $1.2 million. Based on past experience, management has determined that the helicopter will have a useful life of 14,000 flying hours, at which time it will have an estimated residual value of $150,000. During 2016, the helicopter was used for 1,400 flying hours and in 2017 it was used for 1,650 flying hours. Heavy-lift Helicopters has a December 31 year end and uses the units-of-production method of depreciation for its helicopters.
Determine the depreciation expense on this helicopter for 2017 and its carrying amount at December 31, 2017.

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  • CreatedJune 11, 2015
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