{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-06-29T02:13:37-04:00", "answer_date": "2024-06-29 02:13:37", "is_docs_available": null, "is_excel_available": null, "is_pdf_available": null, "count_file_available": 0, "main_page": "student_question_view", "question_id": "4446535", "url": "\/study-help\/questions\/alaska-airlines-and-united-airlines-are-both-passenger-airline-companies-4446535", "question_creation_date_js": "2024-06-29T02:13:37-04:00", "question_creation_date": "Jun 29, 2024 02:13 AM", "meta_title": "[Solved] Alaska Airlines and United Airlines are b | SolutionInn", "meta_description": "Answer of - Alaska Airlines and United Airlines are both passenger airline companies. Although they use similar assets to conduct | SolutionInn", "meta_keywords": "alaska,airlines,united,passenger,airline,companies,similar,assets,conduct,businesses,estimated,lives", "question_title_h1": "Alaska Airlines and United Airlines are both passenger airline companies. Although they use similar assets to conduct their businesses, the estimated lives they use to", "question_title": "Alaska Airlines and United Airlines are both passenger airline companies. Although they", "question_title_for_js_snippet": "Alaska Airlines and United Airlines are both passenger airline companies Although they use similar assets to conduct their businesses, the estimated lives they use to depreciate their assets vary, as shown in the following table Estimated Useful Lives (years) Asset Category Alaska Airlines United Airlines Aircraft 15 25 25 30 Buildings 25 40 25 45 Computer software 3 10 3 15 Other equipment 5 10 3 15 Managers have significant flexibility in setting the estimated useful lives of depreciable assets, and as the table shows, United Airlines uses longer estimated lives for its assets than does Alaska Airlines Required a How does using a longer estimated life for a depreciable asset potentially affect its earnings b Would using a longer estimated life for a depreciable asset be more likely to affect a company's fixed or variable costs Managers have significant flexibility in setting the estimated useful lives of depreciable assets, and as the table shows, United Airlines uses longer estimated lives for its assets than does Alaska Airlines Required a How does using a longer estimated life for a depreciable asset potentially affect its earnings b Would using a longer estimated life for a depreciable asset be more likely to affect a company's fixed or variable costs c In the past, some companies, not United Airlines, have been accused of deliberately overestimating the useful lives of their companies' depreciable assets Speculate as to what would cause them to do this d Review the statement of ethical professional practice shown in ' Exhibit 1 17 of Chapter 1 and comment on which, if any, of the ethical standards are violated by deliberately overestimating the useful lives of depreciable assets e Comment on the provisions of the Sarbanes Oxley Act that are designed to prevent a company's executives from deliberately overestimating the useful lives of depreciable assets Page 156EXHIBIT 1 17 Statement of Ethical Professional Practice Members of IMA shall behave ethically A commitment to ethical professional practice includes overarching principles that express our values, and standards that guide our conduct IMA's overarching ethical principles include Honesty, Fairness, Objectivity, and Responsibility Members shall act in accordance with these principles and shall encourage others within their organizations to adhere to them A member's failure to comply with the following standards may result in disciplinary action Competence Each member has a responsibility to Maintain an appropriate level of professional expertise by continually developing knowledge and skills Perform professional duties in accordance with relevant laws, regulations, and technical standards Provide decision support information and recommendations that are accurate, clear, concise, and timely Recognize and help manage risk Confidentiality Each member has a responsibility to Keep information confidential except when disclosure is authorized or legally required Inform all relevant parties regarding appropriate use of confidential information Monitor to ensure compliance Confidentiality Each member has a responsibility to Keep information confidential except when disclosure is authorized or legally required Inform all relevant parties regarding appropriate use of confidential information Monitor to ensure compliance Refrain from using confidential information for unethical or illegal advantage Integrity Each member has a responsibility to Mitigate actual conflicts of interest and avoid apparent conflicts of interest Advise all parties of any potential conflicts Refrain from engaging in any conduct that would prejudice carrying out duties ethically Abstain from engaging in or supporting any activity that might discredit the profession Contribute to a positive ethical culture and place integrity of the profession above personal interests Credibility Each member has a responsibility to Communicate information fairly and objectively Provide all relevant information that could reasonably be expected to influence an intended user's understanding of the reports, analyses, or recommendations Report any delays or deficiencies in information, timeliness, processing, or internal controls in conformance with organization policy and or applicable law Communicate professional limitations or other constraints that would preclude responsible judgment or successfulorganization policy and or applicable law Communicate professional limitations or other constraints that would preclude responsible judgment or successful performance of an activity Resolution of Ethical Conflict In applying the Standards of Ethical Professional Practice, the member may encounter unethical issues or behavior In these situations, the member should not ignore them, but rather should actively seek resolution of the issue In determining which steps to follow, the member should consider all risks involved and whether protections exist against retaliation When faced with unethical issues, the member should follow the established policies of his or her organization, including use of an anonymous reporting system if available If the organization does not have established policies, the member should consider the following courses of action The resolution process could include a discussion with the member's immediate supervisor If the supervisor appears to be involved, the issue could be presented to the next level of management IMA offers an anonymous helpline that the member may call to request how key elements of the IMA Statement of Ethical Professional Practice could be applied to the ethical issue The member should consider consulting his or her own attorney to learn of any legal obligations, rights, and risks concerning the issue If resolution efforts are not successful, the member may wish to consider disassociating from the organization", "question_description": "
\"image\"image\"image\"image\"image<\/div><\/div><\/div><\/figure> Alaska Airlines and United Airlines are both passenger airline companies. Although they use similar assets to conduct their businesses, the estimated lives they use to depreciate their assets vary, as shown in the following table. Estimated Useful Lives (years) Asset Category Alaska Airlines United Airlines Aircraft 15-25 25-30 Buildings 25-40 25-45 Computer software 3-10 3-15 Other equipment 5-10 3-15 Managers have significant flexibility in setting the estimated useful lives of depreciable assets, and as the table shows, United Airlines uses longer estimated lives for its assets than does Alaska Airlines. Required a. How does using a longer estimated life for a depreciable asset potentially affect its earnings? b. Would using a longer estimated life for a depreciable asset be more likely to affect a company's fixed or variable costs?Managers have significant flexibility in setting the estimated useful lives of depreciable assets, and as the table shows, United Airlines uses longer estimated lives for its assets than does Alaska Airlines. Required a. How does using a longer estimated life for a depreciable asset potentially affect its earnings? b. Would using a longer estimated life for a depreciable asset be more likely to affect a company's fixed or variable costs? c. In the past, some companies, not United Airlines, have been accused of deliberately overestimating the useful lives of their companies' depreciable assets. Speculate as to what would cause them to do this. d. Review the statement of ethical professional practice shown in ' Exhibit 1.17 of ! Chapter 1 and comment on which, if any, of the ethical standards are violated by deliberately overestimating the useful lives of depreciable assets. e. Comment on the provisions of the Sarbanes-Oxley Act that are designed to prevent a company's executives from deliberately overestimating the useful lives of depreciable assets. Page 156EXHIBIT 1.17 Statement of Ethical Professional Practice Members of IMA shall behave ethically. A commitment to ethical professional practice includes overarching principles that express our values, and standards that guide our conduct. IMA's overarching ethical principles include: Honesty, Fairness, Objectivity, and Responsibility. Members shall act in accordance with these principles and shall encourage others within their organizations to adhere to them. A member's failure to comply with the following standards may result in disciplinary action. Competence Each member has a responsibility to . Maintain an appropriate level of professional expertise by continually developing knowledge and skills. . Perform professional duties in accordance with relevant laws, regulations, and technical standards. . Provide decision support information and recommendations that are accurate, clear, concise, and timely. Recognize and help manage risk. Confidentiality Each member has a responsibility to . Keep information confidential except when disclosure is authorized or legally required. . Inform all relevant parties regarding appropriate use of confidential information. Monitor to ensure compliance.Confidentiality Each member has a responsibility to . Keep information confidential except when disclosure is authorized or legally required. . Inform all relevant parties regarding appropriate use of confidential information. Monitor to ensure compliance. . Refrain from using confidential information for unethical or illegal advantage. Integrity Each member has a responsibility to . Mitigate actual conflicts of interest and avoid apparent conflicts of interest. Advise all parties of any potential conflicts. . Refrain from engaging in any conduct that would prejudice carrying out duties ethically. . Abstain from engaging in or supporting any activity that might discredit the profession. . Contribute to a positive ethical culture and place integrity of the profession above personal interests. Credibility Each member has a responsibility to . Communicate information fairly and objectively. . Provide all relevant information that could reasonably be expected to influence an intended user's understanding of the reports, analyses, or recommendations. . Report any delays or deficiencies in information, timeliness, processing, or internal controls in conformance with organization policy and\/or applicable law. . Communicate professional limitations or other constraints that would preclude responsible judgment or successfulorganization policy and\/or applicable law. . Communicate professional limitations or other constraints that would preclude responsible judgment or successful performance of an activity. Resolution of Ethical Conflict In applying the Standards of Ethical Professional Practice, the member may encounter unethical issues or behavior. In these situations, the member should not ignore them, but rather should actively seek resolution of the issue. In determining which steps to follow, the member should consider all risks involved and whether protections exist against retaliation. When faced with unethical issues, the member should follow the established policies of his or her organization, including use of an anonymous reporting system if available. If the organization does not have established policies, the member should consider the following courses of action: . The resolution process could include a discussion with the member's immediate supervisor. If the supervisor appears to be involved, the issue could be presented to the next level of management. . IMA offers an anonymous helpline that the member may call to request how key elements of the IMA Statement of Ethical Professional Practice could be applied to the ethical issue. . The member should consider consulting his or her own attorney to learn of any legal obligations, rights, and risks concerning the issue. If resolution efforts are not successful, the member may wish to consider disassociating from the organization", "transcribed_text": "", "related_book": { "title": "Principles Of Finance", "isbn": "979-8439388899", "edition": "1st Edition", "authors": "Julie Dahlquist, Rainford Knight", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/6290aa2348f9a_11251.jpg", "uri": "\/textbooks\/principles-of-finance-1st-edition-9798439388899", "see_more_uri": "" }, "free_related_book": { "isbn": "1032051361", "uri": "\/textbooks\/aspects-of-the-theory-of-tariffs-1st-edition-9781032051369-9781134624195", "name": "Aspects Of The Theory Of Tariffs", "edition": "1st\u00a0Edition" }, "question_posted": "2024-06-29 02:13:37", "see_more_questions_link": "\/study-help\/questions\/business-finance-2024-September-13", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/determine-the-binding-energy-of-the-last-neutron-in", "description": "Determine the binding energy of the last neutron in a 40\/19K nucleus.", "stars": 3 }, { "url": "\/study-help\/psychology\/what-is-the-difference-between-the-body-and-the-mind-1982758", "description": "What is the difference between the body and the mind?", "stars": 3 }, { "url": "\/berrys-pet-store-records-purchase-transactions-in-the-general-journal", "description": "Berrys Pet Store records purchase transactions in the general journal. 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