On January 1,

2020, Quick Travel Transportation Company purchased a used aircraft at a cost of $48,500,000. Quick Travel expects the plane to remain useful for five years (6,000,000 miles) and to have a residual value of $4,500,000. Quick Travel expects to fly the plane 725,000 miles the first year, 1,350,000 miles each year during the second, third, and fourth years, and 1,225,000miles the last year.

1. Compute Quick Travel'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

b. Units-of-production method (Round the depreciation per unit of output to two decimal places to compute your final answers.)

c. Double-declining balance method

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