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So for instance, both companies as per the notes given, they are revising the depreciation formula, with intended at obtaining a reduction in the final expense for the period. Additionally both companies reduced expenses in similar ratios.
However, both companies are using different approaches. Delta Airlines is increasing the depreciable lives, but also decreasing the salvage value, whereas Singapore is increasing the depreciable lives too, but increasing the salvage value. This approach means, as per last note, that Delta will spread the useful lives of the airplane for 20 years, and likely forced to give a minimal residual value to the aircraft after life expiration...
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