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Assume that at the beginning of 2017, Air Canada purchased a Bombardier Q400 aircraft at a cost of S29,000,000. Air Canada expects the plane to
Assume that at the beginning of 2017, Air Canada purchased a Bombardier Q400 aircraft at a cost of S29,000,000. Air Canada expects the plane to remain useful for five years (3,975,000 km) and to have a residual value of $6,000,000. Air Canada expects the plane to be flown 725,000 km the first year, 1,000,000 km each year during years 2 through 4, and 250,000 km the last year. Compute Air Canada's fifth-year depreciation on the plane using the following methods: a. Straight-line b. Units-of-production c. Double-diminishing-balance a. Using the straight-line method, the fifth-year depreciation is $ b. Using the units-of-production method, the fifth-year depreciation is$. (Round the rate per unit to two decimal places and the final answer to the nearest whole number.) c. Using the double-diminishing-balance method, depreciation is $1,503,360 depreciation is $3,758,400 there is no depreciation, as the asset is fully depreciated
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