Refer to the Lufthansa example on asset depreciation estimates. What adjustments would be required if Lufthansas aircraft

Question:

Refer to the Lufthansa example on asset depreciation estimates. What adjustments would be required if Lufthansa’s aircraft depreciation were computed using an average life of 25 years and salvage value of 5% (instead of the reported values of 12 years and15%)? Show the adjustments to the 2008 and 2009 balance sheets, and to the 2009 income statement.

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...