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S7-6. (Learning Objective 3: Compute partial year depreciation, and select the best depreciation method) Assume that on September 30, 2013, Lufthansa, the national airline of

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S7-6. (Learning Objective 3: Compute partial year depreciation, and select the best depreciation method) Assume that on September 30, 2013, Lufthansa, the national airline of Germany, pur- chased a Jumbo aircraft at a cost of 41,000,000 ( is the symbol for the euro). Lufthansa ex- pects the plane to remain useful for four years (5,200,000 miles) and to have a residual value of 5,200,000. Lufthansa will fly the plane 390,000 miles during the remainder of 2013. Compute Lufthansa's depreciation on the plane for the year ended December 31, 2013, using the follow ing methods: a. Straight-line b. Units-of-production c. Double-declining-balance Which method would produce the highest net income for 2013? Which method produces the lowest net income

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