On January $1,2020,$ Northeast USA Transportation Company purchased a used aircraft at a cost of $$52,300,000.$ Northeast USA expects the plane to remain useful for five years miles$)$ and to have a residual value of $$4,300,000.$ Northeast USA expects to fly the plane $725,000$ miles the first year, $1,275,000$ miles each year during the second, third, and fourth years, and $2,450,000$ miles the last year.

Read the requirements.

Compute Northeast USA'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 for $2020$ and $$9,600,000$ for $2021.$

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 $ $4,973,500$ for $2020$ and for $2021.$

c$.$ Double$-$declining balance method

Using the double$-$declining$-$balance method, depreciation is $$20,920,000$ for $2020$ and $ $12,552,000$ for $2021.$

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

Requirements

Compute Northeast USA's depreciation for the first two years on the plane using the following methods:

a$.$ Straight$-$line method

b$.$ Units$-$of$-$production method $($round depreciation per mile to the closest cent$)$

c$.$ Double$-$declining$-$balance method

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