The units-of-output depreciation method 2. On January 1, 20X6, Outback Air purchased a new engine for...

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The units-of-output depreciation method 2. On January 1, 20X6, Outback Air purchased a new engine for one of its airplanes us

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Answer 1

Answer #1

Year	Depreciation Expenses	Accumulated Depreciation at the end of the year	Annual Expenses Calculation
20X6	$112,500	$112,500	($750000/10000 hours) * 1500 hours
20X7	$300,000	$412,500	($750000/10000 hours) * 4000 hours
20X8	$225,000	$637,500	($750000/10000 hours) * 3000 hours
20X9	$112,500	$750,000	($750000/10000 hours) * 1500 hours

Depreciation formula = Total cost/Total flight hours * Annual hours

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Answer 2

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