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Mideast Airlines Purchased a 777 Aircraft on January 1, 2012

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Essay

Mideast Airlines purchased a 777 aircraft on January 1, 2012 at a cost of $40,000,000. The estimated useful life of the aircraft is 20 years, with an estimated salvage value of $6,000,000.
Instructions
Compute the accumulated depreciation and book value at December 31, 2014 using the straight-line method and the double-declining-balance method.


Definitions:

File

A tool used to remove fine amounts of material from a workpiece, typically made of hardened steel with a series of ridges or teeth.

Impact Socket

A type of socket made from more durable materials designed to withstand the high torque produced by impact wrenches.

Deep Well

A type of well that is constructed at a considerable depth to access groundwater in aquifers.

Air Gun

A tool that uses compressed air to project a forceful stream or projectile, often used for cleaning or in pneumatic tools.

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