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Author Topic: [-] Aircraft not depreciated correctly  (Read 545 times)

Offline aeronut555

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[-] Aircraft not depreciated correctly
« on: December 18, 2019, 11:08:23 PM »
I have a Viscount 700D purchased new in 1969 for $3.5 and in 1993, it accrues $124,000 in depreciation weekly or $6million annually! 

This is the message from the aircraft screen explanation for depreciation:

This is the current calculated value of the aircraft in your bookkeeping.
Aircraft value is calculated using a straight-line depreciation method so that the residual value at the age of 25 years is 10% of the original price.
Original purchase price: 3 174 500 USD
Weekly depreciation: 124 450 USD
Yearly depreciation: 6 471 400 USD

Mark Plank
Aero Italia GW3
« Last Edit: December 18, 2019, 11:10:30 PM by Sami »

Online Sami

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Re: Aircraft not depreciated correctly
« Reply #1 on: December 18, 2019, 11:10:25 PM »
Not a bug. The D check done recently is expensed over the few remaining years before a/c is 25 years old when by accounting rules the value must reach zero (the recent D check has increased the value). (and depreciation is your friend since it's a tax-deductable expense after all...)

(but I cannot investigate further since I have no info which aircraft is in question)
« Last Edit: December 18, 2019, 11:14:27 PM by Sami »

Offline sanabas

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Re: [-] Aircraft not depreciated correctly
« Reply #2 on: December 18, 2019, 11:15:32 PM »
What happens if you D-check a 26 year old plane? The entire value of the D-check instantly depreciates that week?

Online Sami

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Re: [-] Aircraft not depreciated correctly
« Reply #3 on: December 18, 2019, 11:32:17 PM »
Yea I believe it's a direct expense then.

 

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