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. 2 (Click the icon to view the first year depreciation amounts under each method.) Read the requirements. 1. Which depreciation method offers the highest tax advantage for the first year? Describe the nature of the tax advantage. The method offers the tax advantage for the first year of the asset's use. Reference Method (a) straight-line (b) units-of-production (c) double-declining-balance First year depreciation $ 10,800,000 5,625,000 23,560,000 Print Done