Assume that at the beginning of 2017

2017, Air Asia

AirAsia purchased a Bombardier Q400 aircraft at a cost of $ 28 comma 000 comma 000

$28,000,000. Asia

Asia expects the plane to remain useful for five years left parenthesis 5 comma 350 comma 000 km right parenthesis

(5,350,000km) and to have a residual value of $4 comma 750 comma 000

4,750,000. Asia

Asia expects the plane to be flown 900 comma 000

900,000 km the firstyear,1 comma 400 comma 000

1,400,000 km each year during years 2 through4, and 250 comma 000

250,000 km the last year.

1.Compute Asia

Asia's first-year depreciation on the plane using the followingmethods:

a.Straight-line

b.Units-of-production

c.Double-diminishing-balance

2.Show theairplane's carrying amount at the end of the first year under each depreciation method.

Requirement 1. Compute Asia

Asia's first-year depreciation on the plane.

a. Using thestraight-line method, depreciation is $

b. Using theunits-of-production method, depreciation is $

(Hold all decimals during interim calculations. Round the final solution to the nearest wholenumber.)

c. Using thedouble-diminishing-balance method, depreciation is $

Requirement 2. Show theairplane's carrying amount at the end of the first year under each depreciation method. (Use parentheses or a minus sign when subtractingnumbers.)

Carrying amount: Straight-Line Units-of-Production Double-Declining-Balance

Cost

Less: Accumulated depreciation

Carrying amount