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2) Depreciation On January 1, 2018, Phil's Airline purchased a used airplane at a cost of $63,000,000. Boston Airline expects the plane to remain useful
2) Depreciation On January 1, 2018, Phil's Airline purchased a used airplane at a cost of $63,000,000. Boston Airline expects the plane to remain useful for nine years (6.000.000 miles) and to have a residual value of $4,000,000. Boston Airline expects the plane to be flown 1,100,000 miles to be flown 1.100,000 miles the first year and 1,500,000 miles the second year. Requirements Compute first and second-year (2019) depreciation expense on the plane using the following methods: a. Straight-line b. Units-of-production c. Double-declining-balance 2. Calculate the balance in Accumulated Depreciation at the end of the second year for all three methods. Units-of Double-declining- Straight-line production balance Depreciation Expense - Year 1 Depreciation Expense - Year 2 Total Accumulated Depreciation
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