On January 1, 2025, Air Scotland purchased a used airplane for $43,000,000. Air Scotland expects the plane to remain useful for five years (4,000,000 miles) and to have a residual value of $7,000,000. The company expects the plane to be flown 1,400,000 miles during the first year. 

Requirements 

1. Compute Air Scotland’s first-year depreciation expense on the plane using the following methods: 

a. Straight-line 

b. Units-of-production 

c. Double-declining-balance 

2. Show the airplane’s book value at the end of the first year for all three methods.