Requirement 2. Show the airplane's book value at the end of the first year for all three methods.

Homework: Chapter 9 Warm Up Save Score: 8.57 of 15 pts 5 of 7 (5 complete) HW Score: 60.57%, 60.57 of 100 pts S9-3 (similar to) Assigned Media Question Help O On January 1, 2018. Northeast Airlines purchased a used airplane for S42,500,000. Northeast Airlines expects the plane to remain useful for four years (6,000,000 miles) and to have a residual value of $6,500,000. The company expects the plane to be flown 1,200,000 miles the first year. Read the requirements. .. y . , . , . Cost Residual value Useful life in units - Depreciation per unit 42.500.000 S S 6.500.000 6,000,000 = $ 6 ($ Now, select the formula, enter the amounts, and calculate the company's first-year depreciation expense on the plane using the units-of-production method. Current year usage Depreciation per unit = Units-of-production depreciation S 1.200.000 6 7,200,000 X Requirement 1c. Compute Northeast Airlines's first-year depreciation expense on the plane using the double-declining-balance method. Begin by selecting the formula to calculate the company's first-year depreciation expense on the plane using the double-declining-balance method. Then enter the amounts and calculate the depreciation expense for the first year. (Enter "D" for items with a zero value.) Cost ) Accumulated depreciation S 0 2 x (1 / Useful life) (1 2 x (1/4) Double-declining = balance depreciation = $ 21,250,000 42,500,000 Requirement 2. Show the airplane's book value at the end of the first year for all three methods. Straight-Line Units-of-production 42500000 Double-declining balance 42500000 Cost 42500000 Less: Accumulated Depreciation Book Value Enter any number in the edit fields and then click Check Answer. ? All parts showing Clear All Check