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Let's assume Singapore Air (SQ), United Continental (United) and Delta each purchased $400mn modern passenger plane in Jan 2023. SQ straight-line depreciation policy: 10%

Let's assume Singapore Air (SQ), United Continental (United) and Delta each purchased $400mn modern passenger

Let's assume Singapore Air (SQ), United Continental (United) and Delta each purchased $400mn modern passenger plane in Jan 2023. SQ straight-line depreciation policy: 10% residual value & 15 years estimated life. United straight-line depreciation policy: 5% and 30 years. Delta straight-line depreciation policy: 5% and 25 years. Q1. Calculate annual depreciation for each airline. Q2. Which company has the most aggressive depreciation policy? Why would this company adopt such conservative accounting policy?

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