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Airline X depreciates its airplanes over a 15-year period and estimates a salvage value of 10% of the cost of the plane. At the same time, Airline Y depreciates identical airplanes over a 25-year period and estimates a salvage value of 15% of the cost of the plane. As expected, these different assumptions resulted in different operating results. For example, if an airplane costs $ 10 million, Airline X will depreciate $ 260,000 more per year for 15 years than Airline Y. Which company's estimate of useful life more closely reflects reality? Will you feel comfortable as a passenger in a 25-year old airplane? Does the fact that Airline Y subsequently went out of business provide any information as to why its estimates were so substantially different from those of financially sound Airline X?
pacific airlines has three service departments ticketing baggage handling and aircraft maintenance. costs of these
Journal entries and trial balance On October 1, 2012, Faith Schultz established Heavenly Realty, which completed the following transactions during the month
Varmit-B-Gone is a pest control service that operates in a suburban neighborhood.
Explain why an audit of internal control provides value to the investing public. Explain the importance of an audit committee to the reliability of the financial statements and the audit function
avant designs and manufactures polished-nickle fashion bracelets. it offers two bracelets aztec and mayan. the
in the month of november a department had 500 units in the beginning work in process inventory that were 60 complete.
if you have 20 journal entries for the past 6 months that need to be re-calculated to reflect a 20% commission payout on 15 employee's what method would you use to show that your method of calculation is accurate?
discuss the reasons why corporations invest in securities. discuss how the market would be affected if they stopped
Abby and Co. reported a retained earnings balance of $500,000 at December 31, 2010. In September 2011, Abby and Co. determined that insurance premiums of $90,000 for the three-year period beginning January 1, 2010, had been paid and fully expensed..
glaser health products of ranier falls georgia is organized functionally into three divisions operations sales and
balance sheet data for the dover hot tub company on december 31 the end of the fiscal year are shown at the top of the
linda wants to use the 241300 proceeds 163000 20000 58300 241300 from sale of the securities to open a retail store
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