Assume that at the beginning of 2014, Porter Airlines purchased a Bombardier Q400 aircraft at a cost of $25,000,000. Porter expects the plane to remain useful for five years (5,000,000 km) and to have a residual value of $5,000,000. Porter expects the plane to be flown 750,000 km the first year and 1,250,000 km each year during years 2 through 4, and 500,000 km the last year.

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

a. Straight-line

b. Units-of-production

c. Double-diminishing-balance

2. Show the airplane's carrying amount at the end of the first year under each depreciation method.