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Assume that at the beginning of 20 times 6, AirAsia, a regional airline operating predominantly in Southeast Asia, purchased a used Boeing 737 aircraft at
Assume that at the beginning of 20 times 6, AirAsia, a regional airline operating predominantly in Southeast Asia, purchased a used Boeing 737 aircraft at a cost of $53,000,000. AirAsia expects the plane to remain useful for five years (6 million miles) and to have a residual value of $5,000,000. AirAsia expects to fly the plane 775,000 miles the first year, 1,275,000 miles each year during the second, third, and fourth years, and 1,400,000 miles the last year. Compute AirAsia's first-year depreciation on the plane using the following methods: Straight-line Units-of-production Double-declining-balance Show the airplane's book value at the end of the first year under each depreciation method
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