CASE SOLUTION FOR THE DEPRECIATION AT DELTA AIR LINES

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Complete Case details are given below :

Case Name :  The Depreciation at Delta Air Lines
Authors :        William J. Bruns Jr.
Discipline :     Accounting
Case Length : 08 pages
Solution sample availability : YES
Plagiarism : NO (100% Original work)

Description for case is given below :
When students have the English-language PDF of this Brief Case in a coursepack, they will also have the option to purchase an audio version. In estimating depreciation for accounting purposes, Delta Air Lines has changed its assumptions about aircraft lifespan and residual values four times in the last thirty years or so. In the most recent changes, Delta adopted fair value accounting as part of its "fresh start" emergence from bankruptcy. Each of these policy changes has affected future asset values as well as present and future income. Students should organize their case analysis around three types of questions: (1) the estimated life cycle of commercial passenger airplanes; (2) the uses of financial reports, including the purpose of depreciation in reporting on assets and periodic income; and (3) alternative procedures for reporting asset book values and income that might better serve users of financial reports.

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