the alaska airlines balance sheet dated december 31 2011 included the following in 4374917

The Alaska Airlines balance sheet dated December 31, 2011, included the following ($ in millions):Property and equipment Aircraft and other flight equipment …….. $4,041.8 Other property and equipment ………. 762.3 Deposits for future flight equipment ……… 262.5 5,066.6 Less: Accumulated depreciation and amortization … 1,665.1 Net property and equipment ……….. $3,401.5Assume that on January 1, 2012, Alaska acquired new maintenance equipment for $990,000 cash. The equipment had an expected useful life of 5 years and an expected residual value of $90,000. Alaska uses straight-line depreciation. 1. Prepare the journal entry that would be made annually for depreciation on the new equipment. 2. Suppose Alaska sold some of the equipment it originally purchased on January 1, 2012. The equipment being sold had an original cost of $330,000 and an expected residual value of $30,000. Alaska sold the equipment for $220,000 cash 2 years after the purchase date. Prepare the journal entry for the sale. 3. Refer to requirement 2. Suppose Alaska had sold the equipment for $180,000 cash, instead of $220,000. Prepare the journal entry for the sale.View Solution:
The Alaska Airlines balance sheet dated December 31 2011 included

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