Assume that at the beginning of 2020, US Air purchased a Bombardier Q400 aircraft at a cost of $23,000,000. US Air expects the plane to remain useful for five years (6,025,000 km) and to have a residual value of $4,000,000. US Air expects the plane to be flown 925,000 km the first year, 1,500,000 km each year during years 2 through 4, and 600,000 km the last year. 1. Compute US Air's first-year depreciation on the plane using the following methods: a. Straight-line b. Units-of-production c. Double-diminishing-balance 2. Show the airplane's carrying amount at the end of the first year under each depreciation method. Which method results in the highest carrying amount? Which method produces the lowest carrying amount? Briefly explain why.

Assume that at the beginning of 2020, US Air purchased a Bombardier Q400 aircraft at a cost of $23,000,000. US Air expects the plane to remain useful for five years (6,025,000km) and to have a residual value of $4,000,000. US Air expects the plane to be flown 925,000km the first year, 1,500,000km each year during years 2 through 4, and 600,000 km the last year. 1. Compute US Air's first-year depreciation on the plane using the following methods: a. Straight-line b. Units-of-production c. Double-diminishing-balance 2. Show the airplane's carrying amount at the end of the first year under each depreciation method. Which method results in the highest carrying amount? Which method produces the lowest carrying amount? Briefly explain why