Air Canada is Canada’s largest domestic, U.S. transborder, and international airline. Air Canada serves virtually every major market in the world through its global route network. The following is a partial extract from its December 31, 2020, notes to the financial statements: 

Instructions 

a. Air Canada uses straight-line depreciation for all of its depreciable property and equipment. For which of the assets shown in Part R of Note 2 might Air Canada consider using units-of-production instead of straight-line depreciation? Should Air Canada use units-of-production for those assets? 

b. According to this note, major maintenance of airframes and engines is treated differently than other fleet maintenance costs. Explain how Air Canada records these items. Is this appropriate? Why or why not? 

c. How does Air Canada amortize leasehold improvements? Is the treatment appropriate? Why or why not? 

d. Does Air Canada use component depreciation for any of its property and equipment assets? Explain.