Purchase Solution

Depreciation methods for Delta Airlines

Not what you're looking for?

Ask Custom Question

The following information is from the June 30, 1998, balance sheet for Delta Air Lines. (Amounts are in millions)
1998 1997
Flight equipment $11,180 $9,619
Less: Accumulated depreciation 3,895 3,510
Note:

Depreciation and Amortization - Effective July 1, 1998, the Company increased the decpreciable life of certain new generation aircraft types from 20 to 25 years. Owned flight equipment is depreciated on a straight-line basis to a residual value equal to 5% of cost.
1. Assume that all flight equipment will be affected by this policy change. The new policy will not be reflected in the 1998 financial statements, as the policy was changed on July, 1 1998. Estimate the total depreciation expense recognized by Delta on flight equipment for the year ended June 30, 1998, using the old 20-year life and the new 25-year life. Assume there were no flight equipment retirements during the year and new acquisitions are depreciated for half the year.

Purchase this Solution
Solution Summary

Solution discusses the Depreciation methods for Delta Airlines

Solution Preview

Please see the attached Excel file for proper format and formulas.

Purchase of Assets= Assets as on 1998-Assets as on 1997+(Accumulated Depreciation as on 1998-1997)
...

Purchase this Solution
Free BrainMass Quizzes
Transformational Leadership

This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

View More Free Quizzes
Related BrainMass Solutions

  • Depreciation at Delta Airlines: The "Fresh Start"

    591306 Depreciation at Delta Airlines: The "Fresh Start" Estimating depreciation for matching with revenues during an accounting period requires determination of the cost, estimation of the life and residual value, and selecting a pattern for reporting

  • Financial Relationships

    Delta Airlines had a prior relationship with auditors, Deloitte & Touché LLC, this relationship quickly ended after Delta filed for bankruptcy in 2005 (Delta.com, 2006).

  • Delta Airlines: Four Financial Goals

    634063 Delta Airlines: Four Financial Goals Assume the airline Delta Airlines has just made you president.

  • Delta Airlines SWOT analysis

    547244 SWOT analysis I need help in creating a SWOT analysis for Delta Airlines since merger with Northwest Airlines.

  • Financial Comparison Analysis for managers of Delta Airlines

    328634 Financial Comparison Analysis for managers of Delta Airlines and Dell Computers Review of Financial Statements-Delta Airlines and Dell Computers You are attending a managerial meeting, within your publicly held company, to hear a proposal for

  • Merging organizational cultures

    Thank you for asking BrainMass! References 1. Baumwoll, J., Howland, B., Kruse, J., & Lamb, S. (2013). Delta Airlines: An Analytical View.

  • Market segments: Delta Airlines

    Therefore, the Delta Airlines for many decades invested in their marketing message.

  • Delta Airlines: Porter's Five Forces

    the industry - A brief justification of why you believe the force to be high or low Delta Airlines Overview Delta Airlines is an airline that serves over 160 million customers over the course of a year (About delta, 2012).

  • Competitor Analysis of Southwest Airlines

    Another key advantage for Delta is the continents they serve. Delta Airlines serves the continents of Africa, Asia, Australia, Europe, North America, and South America.

View More Related Solutions