On January 1, 2020, Northeast Transportation Company purchased a used aircraft at a cost of $58,900,000. Northeast expects the plane to remain useful for five years (7,200,000 miles) and to have a residual value of $4,900,000. Northeast expects to fly the plane 750,000 miles the first year, 1,375,000 miles each year during the second, third, and fourth years, and 2,325,000 miles the last year. Read the requirements. 1. Compute Northeast'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 $10,800,000 for 2020 and $10,800,000 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 $ 5,625,000 for 2020 and $ 10,312,500 for 2021. c. Double-declining balance method Using the double-declining-balance method, depreciation is $23,560,000 for 2020 and $14,136,000 for 2021. 2. Show the airplane's book value at the end of the first year under each method. Book Value: Cost Straight-Line Units-of- Production Double-Declining- Balance Less: Accumulated depreciation 58,900,000 $ (10,800,000) 58,900,000 (5,625,000) 58,900,000 (23,560,000) $ 48,100,000 $ 53,275,000 $ 35,340,000 Book Value