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On January 1 , 2 0 2 4 , Foley Airline purchased a used airplane at a cost of $ 4 6 , 5 0

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On January 1,2024, Foley Airline purchased a used airplane at a cost of $46,500,000. Foley Airline expects the plane to remain useful for eight years (5,000,000 miles) and to have a residual value of $6,500,000. Foley Airline expects the plane to be flown 1,200,000 miles the first year and 1,500,000 miles the second year.
Read the requirements.
Requirement 1a. Compute second-year (2025) depreciation expense on the plane using the straight-line method.
Begin by selecting the formula to calculate the company's second-year depreciation expense on the plane using the straight-line method. Then enter the amounts and calculate the depreciation expense for the second year.
Requirements
Compute second-year (2025) depreciation expense on the plane using the following methods:
a. Straight-line
b. Units-of-production
c. Double-declining-balance
Calculate the balance in Accumulated Depreciation at the end of the second year for all three methods.
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