Blanket Airlines acquires a new aircraft.It has an estimated life of 15 years and should be used for 15,000 hours of flight.What is the most appropriate method of depreciation to properly match revenues and expenses?

Question

Quizplus · Accepted Answer

The units-of-production method is most appropriate for the aircraft as it depreciates the asset based on its actual usage (in this case, hours of flight), which directly correlates with the generation of revenue, thus properly matching revenues and expenses.

Blanket Airlines Acquires a New Aircraft