Business, 12.08.2020 08:01 jpyperofficialp2z5xs
On January 1, 2017 , Northeast USA Transportation Company purchased a used aircraft at a cost of $ 53,200,000. Northeast USA expects the plane to remain useful for five years (6,500,000 miles) and to have a residual value of $ 5,200,000. Northeast USA expects to fly the plane 900,000 miles the first year, 1,400,000 miles each year during the second, third, and fourth years, and 1,400,000 miles the last year.
1. Compute Northeast USA's depreciation for the first two years on the plane using the straight-line method, theunits-of-production method, and the double-declining balance method.
a. Straight-line method Using the straight-line method, depreciation is $:
b. Units-of-production method (Round the depreciation per unit of output to two decimal places to compute your final answers.) Using the units-of-production method, depreciation is $:
c. Double-declining balance method
Using the double-declining-balance method, depreciation is $ for 2017 and $ for 2018 for 2017 and $ for 2018. for 2017 and for 2017 and $ for 2018.
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On January 1, 2017 , Northeast USA Transportation Company purchased a used aircraft at a cost of $ 5...
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