Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. in august 2020, heavy-lift helicopters ltd. purcha

In August 2020, Heavy-lift Helicopters Ltd. purchased a new helicopter for its logging and heavy...

90.2K

Verified Solution

Question

Accounting

In August 2020, Heavy-lift Helicopters Ltd. purchased a new helicopter for its logging and heavy lift operations at a cost of $0.8192 million. Based on past experience, management has determined that the helicopter will have a useful life of 11,600 flying hours, at which time it will have an estimated residual value of $100,000. During 2020, the helicopter was used for 1,160 flying hours, and in 2021 it was used for 1,560 flying hours. Heavy-lift Helicopters has a December 31 year end and uses the units-of-production method of depreciation for its helicopters. Determine the depreciation expense on this helicopter for 2021 and its carrying amount at December 31, 2021.

image

Year 2 Depreciation Expense Straight-line method $ Units-of-production method $ Double-diminishing-balance method $

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students