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Assume that at the beginning of 2017, Logan Air purchased a Bombardier Q400 aircraft at a cost of $24,000,000. Logan expects the plane to remain
Assume that at the beginning of 2017, Logan Air purchased a Bombardier Q400 aircraft at a cost of $24,000,000. Logan expects the plane to remain useful for five years (5,450,000 km) and to have a residual value of $4,000,000. Logan expects the plane to be flown 750,000 km the first year, 1,400,000 km each year during years 2 through 4, and 500,000 km the last year. Compute Logan'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
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