3. Assume that each aircraft in Question 2 is still in Delta's fleet in 2007. How would you estimate the net book value of aircraft before application of "fresh start" accounting in 2007? How would this compare to the "fresh start" value that Delta estimated in 2007 as described in the notes from the consolidated financial statements included in the Form 10-K and the case?   

 Provide solution for only question 3 

  (Use 25 years and residual values of 10% of cost for 2007.)

Aircraft 2. Assume that Delta Air Lines purchased the following six aircraft Year Purchase price ($millions) Aircraft number 1985 MD 88 $33 D2851 1988 MD 88 $39 D2882 1992 B-757-200 $66 D3921 1993 B-757-200 $68 D3932 2006 B-777-200ER $210 D4061 2007 B-777-200ER $230 D4972 Aircraft 2. Assume that Delta Air Lines purchased the following six aircraft Year Purchase price ($millions) Aircraft number 1985 MD 88 $33 D2851 1988 MD 88 $39 D2882 1992 B-757-200 $66 D3921 1993 B-757-200 $68 D3932 2006 B-777-200ER $210 D4061 2007 B-777-200ER $230 D4972