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Assume that at the beginning of 206, AmerEx, a regional airline operating predominantly in Southeast Asia, purchased a used Boeing 737 aircraft at a cost
Assume that at the beginning of 206, AmerEx, a regional airline operating predominantly in Southeast Asia, purchased a used Boeing 737 aircraft at a cost of $63,600,000. AmerEx expects the plane to remain useful for five years (6.5 million miles) and to have a residual value of $5,100,000. AmerEx expects to fly the plane 700,000 miles the first year; 1,325,000 miles each year during the second, third, and fourth years; and 1,825,000 miles the last year. 1. Compute AmerEx's third-year depreciation on the plane using the following methods: a. Straight-line b. Units-of-production c. Double-declining-balance Requirement 1. Compute AmerEx's third-year depreciation on the plane using the following methods: a. Using the straight-line method, depreciation is $ for 20X8. b. Using the units-of-production method, depreciation is $ for 208. c. Using the double-declining-balance method, depreciation is $ for 208
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