Intro Southwest Airlines just bought a new jet for $35,000,000. The jet falls into the 7-...

Question

Question

business finance

Answer 1

Answer #1

1)

depreciation in year 5

= cost of asset * depreciation rate

= 35,000,000 * 8.93%

= 3125500

2)

book value = cost of asset - accumulated depreciation

= 35000000 - 35000000 * (0.1429 + 0.2449 + 0.1749 + 0.1249 + 0.0893)

= 7808500

Answer 2

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