Assume that on September 30, 2010, LoganAir, the national airline of Switzerland, purchased an Airbus aircraft at
Question:
LoganAir expects the plane to remain useful for six years (4,500,000 miles) and to have a residual value of €5,400,000. LoganAir will fly the plane 410,000 miles during the remainder of 2010.
Compute LoganAir's depreciation on the plane for the year ended December 31, 2010, using the following methods:
a. Straight-line
b. Units-of-production
c. Double-declining-balance
Which method would produce the highest net income for 2010? Which method produces the lowest net income?
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Firstyear depreciation for a partial year a Straightline 45000000 5400000 ...View the full answer
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Related Book For
Financial accounting
ISBN: 978-0136108863
8th Edition
Authors: Walter T. Harrison, Charles T. Horngren, William Bill Thomas
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