Title: Delta Airlines: Concept of Fair Value and Calculation of Depreciation

Part A

1. What is the concept of fair value based on?

2. Highlights Delta Airlines policy for accounting for depreciation of flight equipment and its negative outcome

3. Discussion: The estimated useful life and the salvage values of assets impacts depreciation expense and the stated asset values

Part B

Calculates first year depreciation of flight equipment using the following formula:

Depreciation = (Cost of Asset-Residual Value)/Estimated Useful Life

Word count: 406