Airco owns several aircraft and its balance sheet indicated the following amounts for its aircraft accounts at
Question:
Airco owns several aircraft and its balance sheet indicated the following amounts for its aircraft accounts at the end of 2019 and 2018:
________________________ 12/31/2019 ____________ 12/31/2018
Equipment, aircraft ............. $32,700,000 ................ $22,250,000
Accumulated depreciation ......13,900,000 .................. 13,125,000
Book value ..................... $18,800,000 ................ $ 9,125,000
Required:
1. Assume that Airco did not sell any aircraft during 2019. Determine the amount of depreciation expense for 2019 and the cash spent for aircraft purchases in 2019.
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 2019, and
(c) The cash inflow from the disposal of aircraft?
Balance SheetBalance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
1 Ending accumulated depreciation 13900000 Less Beginning accumulated depreciation 13125000 Deprecia...View the full answer
