DreamJay Aviation has called on your business consulting group again for advice. Bradley has decided that they should extend the life of the aircraft from an original estimate of 15 years to 20 or 25 years. Three years have already been taken on the aircraft. He believes this will allow them to show a larger profit.
Discuss it and have this alternative and the reasons for doing it. What are the pros and cons? In your recommendation to DreamJay, be sure to state the implications of your decision on all of the financial statements, not just the income statement.