question 1

question 2

answer both these questions accurately.

Assume that on September 30,2020, Swiss, the national airline of Switzerland, purchased an Airbus aircraft at a cost of 48,000,000 ( is the symbol for the euro). Swiss expects the plane to remain useful for eight years (5,250,000km) and to have a residual value of 4,750,000. Swiss expects the plane to be flown 425,000km doring the remainder of the first year ended December 31, 2020 . Compute Swiss's depreciation on the plane for the year ended December 31,2020 , using the following methods a. Straight-line b. Units-of-production c. Double-diminishing-balance Which method would produce the highest net income for 2020 ? Which method produces the lowest net income? How does management choose which depreciation method to use? Assume that at the beginning of 2020, Logan Air purchased a Bombardier Q400 aircraft at a cost of $28,000,000. Logan expects the plane to remain useful for five years (4,700,000km) and to have a residual value of $5,000,000 Logan expects the plane to be flown 850,000km the first year, 1,050,000km each year during years 2 through 4 , and 700,000km the last year: 1. Compute Logan's first-year depreciation on the plane using the following methods: a. Straight-line b. Units-of-production c. Double-diminishing-balance 2. Show the airplane's carrying amount at the end of the first year under each depreciation method. Which method results in the highest carrying amount? Which method produces the lowest carrying amount? Briefly explain why