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On January 1, 2020, Foley Air purchased a used Bombardier aircraft at a cost of $85,000,000. Foley expects the plane to remain useful for five
On January 1, 2020, Foley Air purchased a used Bombardier aircraft at a cost of $85,000,000. Foley expects the plane to remain useful for five years (4,500,000 miles) and to have a residual value of $5,750,000 Foley expects the plane to be flown 775,000 miles the first year and 650,000 miles the second year (Note: "Miles" is the unit of measure used in the airline industry.) Compute second year amortization on the plane using the following methods a. Straight line b. UOP c. DDB Calculate the second-year amortization a. Using the straight line method, amortization is $ (Round your answer to the nearest whole dollar.) (Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar.) b. Using the units-of-production method, amortization is $ c. Using the double declining-balance method, amortization is $ (Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar.)
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