At the beginning of 2017, FlyFast Airways purchased a used Boeing jet at a cost of $50,000,000. FlyFast expects the plane to remain useful for five years (6,000,000 miles) and to have a residual value of $4,000,000. FlyFast expects the plane to be flown 750,000 miles the first year. (Note: "Miles" is the unit of measure used in the airline industry.)
1. Compute FlyFast's first-year amortization on the jet using the following methods:
a. Straight line
b. UOP
c. DDB
2. Show the jet's book value at the end of the first year under the straight-line method.