Acct305 Final Paper
Outline 1. A) The amount of PPE on the balance sheet for the two most recent years is $28,751,000. The amount is 2010 is $14,838,000. The amount in 2011 is $13,913,000.
B) The amount of depreciation expense in 2009 is $1,104 (millions), 2010 is $1,093 and 2011 is $1,086.
C) Amounts on Cash Flow Statement for the most recent year that relate to depreciation, gains and sales of property and equipment, and purchases and sale of property of equipment is:
Depreciation: 2011 - $954 (mill)
Amortization: 2011 - $132 (mill)
Proceeds from sale of equipment, property and investments/subsidiaries: 2011 - $(4) mill
Capital expenditures, including purchase dep on flight equip.: 2011 - $(1610) mill
D) What amounts are permitted for inclusion in the capitalized cost of property and equipment: Flight equipment, at cost: 2011 - $7,095 Purchase deposits for flight equip.: 2011 - $5,131 Other equip and property, at cost: - 2011 - $3,005 EQUIP AND PROPERTY UNDER CAPITAL LEASES Flight Equipment: $641 (mill) Other Equipment: $200 (mill) 2. A) Individual components of PPE: (range of estimated useful lives #5) a. American jet aircraft and engines (20-30 years) b. Other regional aircraft and engines (16-20 years) c. Major rotable parts, avionics, and assemblies (Life of equip to which applicable) d. Improvements to leased flight equipment (Lesser of remaining lease term or expected useful life) e. Buildings and improvement (principally on leased land) – (5-30 years or term of lease, including estimated renewal options when renewal is economically compelled at key airports) f. Furniture, fixtures and other equipment (3-10 years) g. Capitalized software (5-10 years)
**Residual value for aircraft, engines, major rotable parts, avionics and assemblies are generally five to ten percent, except when guaranteed by a third party for a different amount.
Equipment and property under capital leases are amortized
B) The amount of depreciation expense in 2009 is $1,104 (millions), 2010 is $1,093 and 2011 is $1,086.
C) Amounts on Cash Flow Statement for the most recent year that relate to depreciation, gains and sales of property and equipment, and purchases and sale of property of equipment is:
Depreciation: 2011 - $954 (mill)
Amortization: 2011 - $132 (mill)
Proceeds from sale of equipment, property and investments/subsidiaries: 2011 - $(4) mill
Capital expenditures, including purchase dep on flight equip.: 2011 - $(1610) mill
D) What amounts are permitted for inclusion in the capitalized cost of property and equipment: Flight equipment, at cost: 2011 - $7,095 Purchase deposits for flight equip.: 2011 - $5,131 Other equip and property, at cost: - 2011 - $3,005 EQUIP AND PROPERTY UNDER CAPITAL LEASES Flight Equipment: $641 (mill) Other Equipment: $200 (mill) 2. A) Individual components of PPE: (range of estimated useful lives #5) a. American jet aircraft and engines (20-30 years) b. Other regional aircraft and engines (16-20 years) c. Major rotable parts, avionics, and assemblies (Life of equip to which applicable) d. Improvements to leased flight equipment (Lesser of remaining lease term or expected useful life) e. Buildings and improvement (principally on leased land) – (5-30 years or term of lease, including estimated renewal options when renewal is economically compelled at key airports) f. Furniture, fixtures and other equipment (3-10 years) g. Capitalized software (5-10 years)
**Residual value for aircraft, engines, major rotable parts, avionics and assemblies are generally five to ten percent, except when guaranteed by a third party for a different amount.
Equipment and property under capital leases are amortized