Books of Olsen Company

Dr
Automobile 9900
To Cash 8400
To Automobile Less acumilated depreciation 1500
Furniture 9600
To Cash 3350
To Truck less accumilated depreciation 6250
Books of Chipper company
Dr Cr
Land 75000
To Cash a/c 75000
Building 143600
To Cody Construction 138000
To Cash a/c 5600
Cody Construction 138000
To Common Shares 90000
To convertible note 16000
To Cash a/c 32000
Depreciation =(Asset value - depreciation expense )/Asset Life

Delta Airlines
Between July1,
Prior to July 1 1986 86 to 93 April 1, 1993, Onward
residual Value 10% 10% 5%
Asset Life 10 15 20
Depreciation 9% 6% 4.75%

Singapore Airlines

Prior to April 1 After April

1989 1 1989
Residual Value 10 20
Asset Life 8 10
Depreciation 11.25% 8%

Q.3
Delta depreciation method
1993
Flight equipment owned 9043
Flight eq under capital leases 173
Ground equipment 0 if aircraft then should ground proerty and equi
Total Equipment 9216
Depreciation old method 552.96
Depreciation new method 437.76
Delta 115.2

Singapore depreciation method

Flight equipment owned 9043

Flight eq under capital leases 173
Ground equipment 0
Total Equipment 9216
Depreciation old method 1036.8
Depreciation new method 737.28
Delta 299.52

80000 100000 140000

0.1 0.3 0.3 0.15 88000 110000
0.2 0.1 0.1 0.05 96000 120000
26400 33000 23100
9600 12000 8400
d ground proerty and equipment be considered ?

154000
168000