At the beginning of 2017, FlyFast Airways purchased a used Boeing aircraft at a cost of $50,000,000.

Question:

At the beginning of 2017, FlyFast Airways purchased a used Boeing aircraft 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 and

500,000 miles the second year. Compute second-year amortization on the plane using the following methods:

a. Straight line

b. UOP

c. DDB