Question
Assume that on September 30, 2017, Flyair, an international airline based inGermany, purchased a Jumbo aircraft at a cost of 47,500,000 ( is the symbol
Assume that on September 30, 2017, Flyair, an international airline based inGermany, purchased a Jumbo aircraft at a cost of 47,500,000 ( is the symbol for theeuro). Flyair expects the plane to remain useful for four years (5,000,000 miles) and to have a residual value of 5,000,000. Flyair will fly the plane 475,000 miles during the remainder of 2017.
A.) Compute international air's depreciation on the plane for the year ended December 31, 2017, using the straight line method. (Do not round intermediary calculations. Only round the amount you input in the cell to the nearest whole number.)
B.) Compute International Air's depreciation on the plane for the year ended December 31, 2017, using the units of production method. (Do not round intermediary calculations. Only round the amount you input in the cell to the nearest whole number.)
C.) Compute International Air's depreciation on the plane for the year ended December 31, 2017, using the double declining method. (Do not round intermediary calculations. Only round the amount you input in the cell to the nearest whole number.)
Which method would produce the highest net income for 2017? Which method produces the lowest net income ?
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