On January 1 , 2023 , Air Continental purchased a used Bombardier aircraft at a cost of $ 60,000,000 Air Continental expects the plane to remain useful for four years ( 5,500,000 miles ) and to have a residual value of $ 5,500,000 Air Continental expects the plane to be flown 750,000 miles the first year , and 600,000 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 method : Straight line