On March 31, 2015, Orbit Airways purchased a used Boeing aircraft at a cost of $45 million.

Question:

On March 31, 2015, Orbit Airways purchased a used Boeing aircraft at a cost of $45 million. Orbit Airways expects to fly the plane for five years and to have a residual value of $5 million. Compute Orbit Airways' depreciation on the plane for the year ended December 31, 2015, using the straight-line method.