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B. You suspect Airline A has been overstating net income by understating depreciation on the B737-900 aircraft in its fleet. To check on this, you
B. You suspect Airline A has been overstating net income by understating depreciation on the B737-900 aircraft in its fleet. To check on this, you do research and discover the following: Airline A B Aircraft B737-900 B737-900 B737-900 B737-900 Hours Operated Per Year 3,150 3.200 3,175 3,125 Depreciation Method Straight-Line Straight-Line Straight-Line Straight-Line D You are relieved to observe the above similarities, but realize you must compare the airlines depre- ciation calculations in two additional ways, one of which was stressed in the lecture notes, before you can feel okay about Airline A's depreciation of its B737-900. You need to make comparisons of: 1. 2. B. You suspect Airline A has been overstating net income by understating depreciation on the B737-900 aircraft in its fleet. To check on this, you do research and discover the following: Airline A B Aircraft B737-900 B737-900 B737-900 B737-900 Hours Operated Per Year 3,150 3.200 3,175 3,125 Depreciation Method Straight-Line Straight-Line Straight-Line Straight-Line D You are relieved to observe the above similarities, but realize you must compare the airlines depre- ciation calculations in two additional ways, one of which was stressed in the lecture notes, before you can feel okay about Airline A's depreciation of its B737-900. You need to make comparisons of: 1. 2
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