Case ID: 198001
Solution ID: 24062
Words: 612
Price $ 75

Depreciation at Delta Air Lines and Singapore Airlines A Case Solution

Case Solution

In the current scenario, the value of the asset (Flight equipment) is $100. The policies regarding the residual value and the useful life of the asset have changed in the past five 8 years. Delta Airlines managed to reform its depreciation policy two times, one in July 1986 and the other in March 1993. On the contrary, Singapore Airlines relied on only one policy change which occurred near April 1989. Hence, the depreciation expenses per $100 value of flight equipment have gradually witnessed a changing pattern. The following two tables depict the detailed calculations for the depreciation values of the two Airlines.

Excel Calculations

·         Depreciation Calculations                                            

·         Delta Airlines                                    

·         Singapore Airlines                           

·         Difference of Depreciation for Delta Airlines      

·         As per Delta Airline Change        

·         As per Singapore Airline Change  

Questions Covered