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Hope We Land Airlines expects the plane to remain useful for 5 years, or 3,960,000 miles and to have a residual value of $5,720,000. The

image text in transcribedimage text in transcribed Hope We Land Airlines expects the plane to remain useful for 5 years, or 3,960,000 miles and to have a residual value of $5,720,000. The company expects the plane to be flown 1,090,000 during the first year. Note: When inputting a percentage value, do not include the % symbol, and round your answer to two decimal places (e.g., 50.35). 1. Compute Hope We Land Airlines first-year depreciation expense on the plane using the following methods: a. Straight-line Method =( Cost-Residual Value )/ Time = Depreciation Per Year Straight-line Method =( )=$ per year b. Units of Production =( Cost-Residual Value )/ Usage = Depreciation Per Unit Straight-line Method =( )=$ Depreciation per Unit Miles = Depreciation x= c. Double-declining balance 1/(# of years )= Percent of Straight Line Depreciation 1/ = 2 Percent of Straight Line Depreciation = Percent of Double Declining Depreciation 2x %= % Percent of Double Declining Depreciation Cost = Depreciation %$(=$1 2. Show the airplane's book value at the end of the first year for all three methods. 2 Percent of Straight Line Depreciation = Percent of Double Declining Depreciation 2x %= %

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