Which method depreciation is most appropriate for the entity to compute depreciation for the significant parts of the aircraft?
A)Straight line method for all parts
B)Unit production method based on air miles flown for the jet engines and SLM method for all other parts.
C)Diminishing balance method for all parts
D)None of the above

Question

Quizplus · Accepted Answer

The unit production method based on air miles flown is most appropriate for jet engines because their wear and tear is closely related to how much they are used, rather than simply the passage of time. The straight-line method (SLM) is suitable for other parts of the aircraft that depreciate more uniformly over time, regardless of usage.

Which Method Depreciation Is Most Appropriate for the Entity to Compute