Airline X depreciates its airplanes over a 15- year period and estimates a salvage value of 10% of the cost of the plane. At the same time, Airline Y depreciates identical airplanes over a 25-year period and estimates a salvage value of 15% of the cost of the plane. As expected, these different assumptions resulted in different operating results. For example, if an airplane costs $ 10 million, Airline X will depreciate $ 260,000 more per year for 15 years than Airline Y. Which companys estimate of useful life more closely reflects reality? Will you feel comfortable as a passenger in a 25-year old airplane? Does the fact that Airline Y subsequently went out of business provide any information as to why its estimates were so substantially different from those of financially sound Airline X? Using the CSU-Global Library, identify another company which reported accounting errors or changes. How did investors' and the public's reaction to the report affect the company

Module 7: Discussion Forum Airline X depreciates its airplanes over a 15-year period and estimates a salvage value of 10% of the cost of the plane. At the same time, Airline Y depreciates identical airplanes over a 25-year period and estimates a salvage value of 15% of the cost of the plane. As expected, these different assumptions resulted in different operating results. For example, if an airplane costs $10 million, Airline X will depreciate $ 260,000 more per year for 15 years than Airline Y. 1. Which company's estimate of useful life more closely reflects reality? 2. Will you feel comfortable as a passenger in a 25-year old airplane? 3. Does the fact that Airline Y subsequently went out of business provide any information as to why its estimates were so substantially different from those of financially sound Airline X? 4. Using the CSU-Global Library, identify another company which reported accounting errors or changes. How did investors' and the public's reaction to the report affect the company? Respond to two or more of your classmates' postings in any of the following ways: Build on something your classmate said. Explain why and how you see things differently Ask a probing or clarifying question. Share your understanding of your classmate's posting. Offer and support an opinion with peer-reviewed sources or industry leading practices Expand on your classmate's posting by providing constructive feedback