Assume that on September $30$September $30,20202020,$ LuxuryairLuxuryair$,$ an international airline based in$$ Germany, purchased a Jumbo aircraft at a cost of euro $48$ comma $000$ comma $00048,000,000($euro$$ is the symbol for the$$ euro$).$ LuxuryairLuxuryair expects the plane to remain useful for eighteight years $(6$ comma $000$ comma $0006,000,000$miles$)$ and to have a residual value of euro $4$ comma $500$ comma $0004,500,000.$ LuxuryairLuxuryair will fly the plane $350$ comma $000350,000$ miles during the remainder of $20202020.$

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Part $1$

a$.$ Compute LuxuryairLuxuryair$\text{'}$s depreciation on the plane for the year ended December$31,20202020,$ using the$$ straight$-$line method.

The depreciation on the plane for the year ended December $31,2020,$ using the straight$-$line method is $$

Which method produces the lowest net income?depreciation produces the highest net income.depreciation produces the highest net income.depreciation produces the lowest net income.

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Requirements

Compute LuxuryairLuxuryair$\text{'}$s depreciation on the plane for the year ended December$31,20202020,$ using the following$$ methods:

a$.$

$$Straight$-$line

b$.$

$$Units$-$of$-$production

c$.$

$$Double$-$declining$-$balance

Which method would produce the highest net income for $20202020?$ Which method produces the lowest net$$ income?