Assume that at the beginning of 2017, Foley Air purchased a Bombardier Q400 aircraft at a...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Assume that at the beginning of 2017, Foley Air purchased a Bombardier Q400 aircraft at a cost of $29,000,000. Foley expects the plane to remain useful for five years (4,400,000 km) and to have a residual value of $4,750,000. Foley expects the plane to be flown 850,000 km the first year, 1,050,000 km each year during years 2 through 4, and 400,000 km the last year. 1. Compute Foley's first-year depreciation on the plane using the following methods: a. Straight-line b. Units-of-production c. Double-diminishing-balance 2. Show the airplane's carrying amount at the end of the first year under each depreciation method. Requirement 1. Compute Foley's first-year depreciation on the plane. a. Using the straight-line method, depreciation is $ b. Using the units-of-production method, depreciation is $ (Hold all decimals during interim calculations. Round the final solution to the nearest whole number.) c. Using the double-diminishing-balance method, depreciation is $ Requirement 2. Show the airplane's carrying amount at the end of the first year under each depreciation method. (Use parentheses or a minus sign when subtracting numbers.) Units-of- Production Carrying amount: Cost Less: Accumulated depreciation Carrying amount Straight-Line Double-Declining- Balance Assume that at the beginning of 2017, Foley Air purchased a Bombardier Q400 aircraft at a cost of $29,000,000. Foley expects the plane to remain useful for five years (4,400,000 km) and to have a residual value of $4,750,000. Foley expects the plane to be flown 850,000 km the first year, 1,050,000 km each year during years 2 through 4, and 400,000 km the last year. 1. Compute Foley's first-year depreciation on the plane using the following methods: a. Straight-line b. Units-of-production c. Double-diminishing-balance 2. Show the airplane's carrying amount at the end of the first year under each depreciation method. Requirement 1. Compute Foley's first-year depreciation on the plane. a. Using the straight-line method, depreciation is $ b. Using the units-of-production method, depreciation is $ (Hold all decimals during interim calculations. Round the final solution to the nearest whole number.) c. Using the double-diminishing-balance method, depreciation is $ Requirement 2. Show the airplane's carrying amount at the end of the first year under each depreciation method. (Use parentheses or a minus sign when subtracting numbers.) Units-of- Production Carrying amount: Cost Less: Accumulated depreciation Carrying amount Straight-Line Double-Declining- Balance
Expert Answer:
Answer rating: 100% (QA)
1a StraightLine Depreciation Depreciation Expense StraightLine Cost Residual Value Useful Life Depreciation Expense StraightLine 29000000 4750000 5 ye... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these finance questions
-
For the following exercises, match the given function of best fit with the appropriate scatterplot in Figure 7 through Figure 11. Answer using the letter beneath the matching graph. y = 5.598 ...
-
United Aluminum Company of Cincinnati produces three grades (high, medium, and low) of aluminum at two mills. Each mill has a different production capacity (in tons per day) for each grade, as...
-
Consider the research described in Exercise 11.4.6 in which 10 women in an aerobic exercise class, 10 women in a modern dance class, and a control group of 9 women were studied. One measurement made...
-
As we continue our discussions regarding revenue's associated with public sector, this will help reinforce some of the ideas regarding taxes on goods and services. Through the next week, save your...
-
Three infinite lines of charge, all parallel to the z-axis, are located at the three corners of the kite-shaped arrangement shown in Fig. 4-29 (P4.17). If the two right triangles are symmetrical and...
-
Figure shows the pole-zero plots for four different LTI systems. Based on these plots, state whether or not each system is an all-passsystem. Im (2) .(2) . Re 4 H() () Re Re
-
On December 31, 2017, Phillip (Appendix 10A) Company issued \(\$ 600,000\) of ten-year, nine percent bonds payable for \(\$ 496,771\), yielding an effective interest rate of twelve percent. Interest...
-
Denominator-level choices, changes in inventory levels, effect on operating income. Koshu Corporation is a manufacturer of computer accessories. It uses absorption costing based on standard costs and...
-
The weight distribution on ________ and _______ is critical to maintaining an even feel to the typeface
-
A chemical constituent flows between three reactors as depicted in Fig. P11.15. Steady-state mass balances can be written for a substance that reacts with first-order kinetics. For example, the mass...
-
Here is the data you and Daniele have managed to collect so far. Daniele and Angela are going to own the coffee shop for 4 years and then convert it into a clothing store (they think it would be more...
-
Using work by Collins and Jones & Shorter (both articles), how can we think about the lyrics of the song WAP by Cardi B and Megan Thee Stallion? Given the history of Africana/Black sexuality...
-
21. Two charges carrying +2.5 x 10-5 C and -3.7 x 10-7 C respectively are placed 25.0cm apart. The positive charge is to the left of the negative charge. (a) Draw a diagram showing the point charges...
-
Technovia, Inc. has two divisions: Auxiliary Components and Audio Systems. Divisional managers are encouraged to maximize return on investment and EVA. Manages are essentially free to determine...
-
Two charges of equal magnitude, but opposite sign, are situated on the x-axis as shown, and consider q = 5.00 nC and r = 10.0 cm. Calculate the magnitude of the net electric field at the origin. y r...
-
Mia works in both the jewelry department and the cosmetics department of a retail store. She assists customers in both departments and organizes merchandise in both departments. The store allocates...
-
(a) Denmark Cookie Co is looking to fund a new factory and production facilities to produce cakes for 12 years with debt financing. Explain why loan covenants are imposed on the borrowings of this...
-
Consider the reaction of acetic acid in water CH 3 CO 2 H(aq) + H 2 O(l) CH3CO 22 (aq) + H 3 O + (aq) where Ka 5 1.8 3 1025. a. Which two bases are competing for the proton? b. Which is the stronger...
-
In 2012, Lou has a salary of $54,000 from her job. She also has interest income of $1,700. Lou is single and has no dependents. During the year, Lou sold silver coins held as an investment for a...
-
Clifford Johnson has a limited partnership investment and a rental condominium. Clifford actively manages the rental condominium. During 2012, his share of the loss from the limited partnership was...
-
Bev and Ken Hair have been married for 3 years. They live at 3567 River Street, Springfield, MO 63126. Ken is a full-time student at Southwest Missouri State University (SMSU) and Bev works as an...
-
Sherwin Corporation invest its excess cash in equity securities when such founds are not needed to support operations. At the beginning of the year the companys portfolio consisted of the following...
-
Amy Cardoza, Jeff Williams, and Claire Mangoni are partners in an existing music business. Each partner's equity is \($32,000,\) for a total equity of \($96,000.\) The partners agree to admit Russ...
-
Financial statements are interrelated and connected to one another. A change on one financial statement will have an impact on other financial statements. For example, if a corporation neglected to...
Study smarter with the SolutionInn App