On January$1,20202020,$ Best ShippingBest Shipping Transportation Company purchased a used aircraft at a cost of $ $51$ comma $200$ comma $000$$$51,200,000.$ Best ShippingBest Shipping expects the plane to remain useful for fivefive years $(7$ comma $300$ comma $0007,300,000$miles$)$ and to have a residual value of $ $5$ comma $200$ comma $000$$$5,200,000.$ Best ShippingBest Shipping expects to fly the plane $875$ comma $000875,000$ miles the first$$ year, $1$ comma $300$ comma $0001,300,000$ miles each year during the$$ second, third, and fourth$$ years, and $2$ comma $525$ comma $0002,525,000$ miles the last year.

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Part $1$

$1.$ Compute Best ShippingBest Shipping$\text{'}$s depreciation for the first two years on the plane using the$$ straight$-$line method, the$$ units$-$of$-$production method, and the$$ double$-$declining balance method.

a$.$ Straight$-$line method

Using the straight$-$line method, depreciation is

$$9,200,000$

for $2020$ and

$$9,200,000$

for $2021.$

Part $2$

b$.$ Units$-$of$-$production method $($Round the depreciation per unit of output to two decimal places to compute your final$$ answers.$)$

Using the units$-$of$-$production method, depreciation is

$$5,512,500$

for $2020$ and

$$8,190,000$

for $2021.$

Part $3$

c$.$ Double$-$declining balance method

Using the double$-$declining$-$balance method, depreciation is

$$20,480,000$

for $2020$ and

$$12,288,000$

for $2021.$

Part $4$

$2.$ Show the$$ airplane's book value at the end of the first year under each method.

Book Value:

Straight$-$Line

Less:

Book Value