Accounting Depreciation at Delta Airlines & Singapore Airlines (Solution to Case #2) 24th November‚ 2009 1. Calculate the annual depreciation expense that Delta and Singapore would record for each $100 gross value of aircraft. a. Delta: i. Prior to July 1‚ 1986 the Delta airline assets were depreciated using Straight Line Method at 10% for 10 years for a salvage value of 10%. Depreciation Expense = (Cost of Asset – Salvage Value) / number of year Depreciation Expense
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Mattel Property‚ Plant‚ and Equipment Property‚ plant‚ and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over estimated useful lives of 10 to 40 years for buildings‚ 3 to 10 years for machinery and equipment‚ and 10 to 20 years‚ not to exceed the lease term‚ for leasehold improvements. Tools‚ dies‚ and molds are amortized using the straight-line method over 3 years. Estimated useful lives are periodically reviewed
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would require the following expenditures: Mr. Handy believes that all these outlays could be depreciated for tax purposes in the seven-year MACRS class. NETCO ’s chief engineer‚ McPhail‚ estimates the postoverhaul operating costs as follows: These costs generally increase with inflation‚ which is forecasted at 2.5% a year. The Vital Spark is carried on NETCO ’s books at a net depreciated value of only $100‚000‚ but could probably be sold “as is‚” along with an extensive inventory
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Break Even Analysis In business planning‚ asking the proper questions and obtaining answers to those questions is arguably the most important thing. Questions such as; how much do we have to sell to reach our profit goal? How much do our sales need to increase in order to cover a planned increase in advertising costs? What price should we charge to cover our costs and allow for the planned profit goals? Is our business going to be profitable? Answers to such difficult questions become accessible
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1. award: 7 out of 7.00 points TF Qu. 1 Activity-based costing involves a two-stage ... Activity-based costing involves a two-stage allocation process in which overhead costs are first assigned to departments and then to jobs on the basis of direct labor-hours. True False True / False Difficulty: Medium TF Qu. 1 Activity-based costing involves a two-stage ... Learning Objective: 03-01 Understand the basic approach in activity-based costing and how it differs from conventional costing
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ACCTNG 3402 – Financial Accounting and Reporting II Assignment due February 13‚ 2013 Spring‚ 2013 Depreciation: Airplanes and Garbage Trucks Your answers to the questions below should be clear‚ well-written‚ free of grammar and spelling errors‚ double-spaced with margins of at least one inch on all sides‚ and word-processed. In preparing this assignment‚ you may discuss the issues with each other or with anyone else‚ but your written answers must be your own work. If you need to quote someone
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on cost‚ operational control‚ systems‚ and quality at the expense of growth? Answer: We don’t need to be concerned about this issue too much. Actually CitySoft has been growing fast since 1998 to 1999‚ and it is the time to focus more on its cost‚ operational control and systems in order to improve CitySoft’s profitability in the future. Refining the process of operation and cost management is quite necessary for CitySoft at this point‚ because if it kept expanding without improving its cost‚ operational
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He is responsible for making decisions and plans about the firm and for controlling the firm’s employees. The goal of an MBA manager is to maximise the firm’s value through the use of the firm’s tangible and intangible assets. He maximises this value by obtaining the highest Profits possible. In the following discussion‚ I will examine how senior management in general and MBA graduates in particular can use the field of Managerial Accounting to make decisions/plan and control employees in order
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The Most Important Decision of My Life. During the course of our lifetimes we make many significant and difficult choices that affect us. These choices affect our personal and professional lives. Therefore‚ we make these choices with much thought and care. One of the most difficult and important decisions I have made was deciding whether to keep studying Engineer or definitely change to English Teaching‚ a career that always caught my attention. The question was brought up by my dad‚ he knew that
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Chapter 12 Managerial Decisions for Firms with Market Power Market power is the ability of all price setting firms to raise price without losing all sales‚ which causes the price setting firm’s demand to be downward-sloping. When firms with market power raise price‚ even though sales do not fall to zero‚ sales do decrease because of the law of demand. The effect of the change in price on the firm’s sales depends to a large extent on the amount of its market power‚ which can differ greatly among
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