Southwest has owned flight equipment for 17 years. The flight equipment originally cost $30 million and...

  

Transcribed Image Text:

Southwest has owned flight equipment for 17 years. The flight equipment originally cost $30 million and was depreciated using the straight-line method with zero residual value and a useful life of 25 years. Which of the following is true after Southwest has recorded depreciation for the 17th year? Multiple Choice The equipment's net book value is $9,600,000. None of the other statements is true. The equipment's accumulated depreciation is a debit balance of $20,400,000. The equipment's gross book value is a debit balance of $20,400,000. The depreciation expense for the 17th year is $20,400,000. Southwest Airlines sold flight equipment for $11 million cash at the end of its 17th year of use. The flight equipment originally cost $30 million and was depreciated using the straight-line method with zero residual value and a useful life of 25 years. How does Southwest record the disposal of the aircraft? Multiple Choice Credit flight equipment for $11,000,000. Credit gain on disposal for $20,400,000. None of the other choices is correct. Credit accumulated depreciation for $30,000,000. Debit accumulated depreciation for $20,400,000. Southwest has owned flight equipment for 17 years. The flight equipment originally cost $30 million and was depreciated using the straight-line method with zero residual value and a useful life of 25 years. Which of the following is true after Southwest has recorded depreciation for the 17th year? Multiple Choice The equipment's net book value is $9,600,000. None of the other statements is true. The equipment's accumulated depreciation is a debit balance of $20,400,000. The equipment's gross book value is a debit balance of $20,400,000. The depreciation expense for the 17th year is $20,400,000. Southwest Airlines sold flight equipment for $11 million cash at the end of its 17th year of use. The flight equipment originally cost $30 million and was depreciated using the straight-line method with zero residual value and a useful life of 25 years. How does Southwest record the disposal of the aircraft? Multiple Choice Credit flight equipment for $11,000,000. Credit gain on disposal for $20,400,000. None of the other choices is correct. Credit accumulated depreciation for $30,000,000. Debit accumulated depreciation for $20,400,000.

Answer rating: 100% (QA)

The equipments net book value is 9600000 Explanation The original cost of the flight equipment was 3... View the full answer