... 90/8 = $11.25 2. From April 1st 1989 to end of FY-1993 Depreciation expense = (100 - (0.2 * 100))/10 = 80/10 = $8 3. From end of FY-1993 to today Depreciation expense = (100 - (0.2 * 100))/10 = 80/10 = $8 2 Difference in accounting for depreciation expenses There is a significant difference in the way Delta airlines and Singapore airlines are accounting for depreciation expenses. For example, the following table shows the depreciation expenses for Delta airlines and Singapore airlines for $100 Million worth of aircraft asset, after April 1st 1993. Delta Singapore Residual (%) 5 20 Age (Years) 20 10 Depreciation Expense for $100 Million worth of aircraft in Million dollars 4.5 8 Final worth of the asset after aging period (Million Dollars) 5 20 According to the above calculations, Delta airlines will incur $5Million of depreciation expenses per annum and will be left with $5M worth of assets at the end of the aging period. In contrast, Singapore airlines will incur $8M ...

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