On January1, 2017,Fast DeliveryTransportation Company purchased a used aircraft at a cost of$45,200,000.Fast Deliveryexpects the plane to remain useful for five

years(5,000,000miles) and to have a residual value of$5,200,000.Fast Deliveryexpects to fly the plane825,000miles the firstyear,1,200,000miles each year during thesecond, third, and fourthyears, and575,000miles the last year.

How much income tax willAlaska Freightsave for the first year of theairplane's use under the method you just selected as compared with using thestraight-line depreciationmethod? Thecompany's income tax rate is33%. Ignore any earnings from investing the extra cash.

Compute the tax savings:

Double-declining-balance depreciation- ??

Less: Straight-line depreciation- ??

Excess depreciation tax deduction- ??

Income tax rate- 33%

Income tax savings for first year- ??