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Calculate the amortization and net book value at december

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Question - Prairie Airlines purchased a 747 aircraft on January 1, 2007, at a cost of $30,000,000. The estimated useful life of the aircraft is 20 years, with an estimated residual value of $4,000,000. On January 1, 2009 the airline revises the total estimated useful life to 15 years with a revised residual value of $3,000,000.

Required -

(a) Calculate the amortization and net book value at December 31, 2008 using the straight- line method and the double declining-balance method.

(b) Assuming the straight-line method is used, calculate the amortization expense for the year ended December 31, 2009.

Reference no: EM133165363

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