At the beginning of the year, Logan Services purchased a used airplane for \($65,000,000\). Logan Services expects the plane to remain useful for 4 years (6 million miles) and to have a residual value of \($5,000,000\). The company expects the plane to be flown 1.3 million miles the first year.
Requirements

1. Compute Logan Services’ first-year depreciation on the plane using the following methods:

a. Straight-line

b. Units-of-production

c. Double-declining-balance Show the airplane’s book value at the end of the first year under the straight-line method.