At the beginning of the year, Texas Aero purchased a used Boeing jet for \(\$ 35,000,000\). Texas Aero expects the plane to remain useful for five years ( 6 million miles) and to have a residual value of \(\$ 5,000,000\). The company expects the plane to be flown 1 million miles the first year.

1. Compute Texas Aero's first-year depreciation on the plane using the following methods:

a. Straight-line

b. Units-of-production 

c. Double-declining-balance

2. Show the airplane's book value at the end of the first year under the straight-line method.