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Assume that at the beginning of 2020, Foley Air purchased a Bombardier Q400 arcratt at a cost of $20,000,000. Foley expects the plane to remain

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Assume that at the beginning of 2020, Foley Air purchased a Bombardier Q400 arcratt at a cost of $20,000,000. Foley expects the plane to remain useful for five years (4.375, 000 im) and to have a residual value of $4,750,000. Foley expects the plane to be fown 825,000km the first year, 1,050,000km each year during years 2 tircugh 4 , and 400,000km bhe fast year. 1. Compute Foley's first-yoar depreciation on the plane using the following methods: a. Straight-line b. Units-of-production c. Double-diminishing balance 2. Show the airplane'i carrying amount at the end of the first year under each degreciabos method. Which mothod results in the highost carning amount? Which methed erosuces the lowest camying amount? Briefly explain why. Requirement 1. Comoute Foley's first-year depreciation on the plane. a. Using the straight-lne method, depreciation is 5 (Hold all decimals during interim calculatiens. Round the final solution to the nearest whele number.) b. Using the unts-d-production method, depreciation is 1 (Hold all decimals during interim calculations. Round the final solution to the nearest whele numbee) c. Using the doutle-dminishing-balance mothod, depreciation is $ (Chold all decimals during interim ealculations. Flound the final selutien to the neareat whole number) Requirement 2. Show the airplane's carrying amount at the end of the first year undet each depreciaton method. Which method resuts in the highest carryng amount? Wich method prodvoes the lowest carrying amount? Bciefly explain why. (Use parentheses or a minus sign when subtracting numbers.) refults in the highest carrying amount and wil vary depending on the use of the asset. amount since it writes oft a amount of the aseet's cost near the start of its useful ile

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