S10-6 Calculating depreciation by three methods–second year At the beginning of 2017, JetQuick Airlines purchased a used Boeing jet at a cost of $46 million. JetQuick expects the plane to remain useful for eight years (5 million kilometres) and to have a residual value of $6 million. JetQuick expects the plane to be flown for 1.3 million kilometres the first year and 1 million kilometres the second year. Requirements 1 Calculate second-year (2018) depreciation on the plane using the following methods: a straight line b units of production c reducing balance (use 2 x the SL rate). 2 Calculate the balance in Accumulated depreciation at the end of the second year using the straight-line method of depreciation.

S10-6 Calculating depreciation by three methods–second year At the beginning of 2017, JetQuick Airlines purchased a used Boeing jet at a cost of $46 million. JetQuick expects the plane to remain useful for eight years (5 million kilometres) and to have a residual value of $6 million. JetQuick expects the plane to be flown for 1.3 million kilometres the first year and 1 million kilometres the second year. Requirements 1 Calculate second-year (2018) depreciation on the plane using the following methods: a straight line b units of production c reducing balance (use 2 x the SL rate). 2 Calculate the balance in Accumulated depreciation at the end of the second year using the straight-line method of depreciation.

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Description: S10-6 Calculating depreciation by three methods–second yearAt the beginning of 2017, JetQuick Airlines purchased a used Boeing jet at a cost of $46 million.JetQuick expects the plane to remain useful for eight years (5 million kilometres) and to hav

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter10: Long-lived Tangible And Intangible Assets

Section: Chapter Questions

Problem 19E

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