ACQUISITION OF USED AIRPLANES. Baltimore Air Freight purchased three used airplanes for cash of $21,000,000. The aircraft were immediately overhauled and then put into service. Although the planes are similar, Baltimore decided to record them in separate accounts. The appraisal values, overhaul costs, remaining expected

. lives, and residual values of the three planes are presented in the following table:

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Appraisal value Overhaul cost Residual value Expected life PLANE 1 $7,717,500 $8,820,000 PLANE 2 PLANE 3 $5,512,500 1,400,000 900,000 1,100,000 1,300,000 1,800,000 1,000,000 5 years 5 years 4 years REQUIRED: 1. Compute the acquisition cost of each aircraft. 2. Prepare the entry to record the acquisition in Baltimore's journal. 3. Prepare the journal entry to record the overhaul costs. 4. Write the journal entry to record 1 full year's straight-line depreciation for each of the planes.