12-13

A Celty Airline jet costs $28,000,000 and is expected to fly 200,000,000 miles during its 10 -year life. Residual value is expected to be zero because the plane was used when acquired. If the plane travels 54,000,000 miles the first year, how much depreciation should Celty Airline record under the units-of-production method (Provide calculations). Latt On Demand purchased a coffee drink machine on January 1, 20X1, for $44,000. Expected useful life is 10 years or 100,000 drinks. In 201,3,000 drinks were sold, and in 20X 14,000 drinks were sold. Residual value is $4,000. Determine the depreciation expense for 201 and 202 using the straight-line method, prepare a schedule that shows annual depreciation expense, accumulated depreciation, and book value for 201 and 202. Provide all calculations