The Units of Production question

S9-3 (similar to) Question Help On January 1, 2018, Foley Airlines purchased used airplane for $48,500,000. Foley 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 1,600,000 miles the first year. Read the requirements. Requirement 1a. Compute Foley Airlines's first-year depreciation expense on the plane using the straight-line method. Begin by selecting the formula to calculate the company's first-year depreciation expense on the plane using the straight-line method. Then enter the amounts and calculate the depreciation for the first year. Cost Residual value ) Useful life = Straight-line depreciation $ 10,500,000 48,500,000 6,500,000 4 Requirement 1b. Compute Foley Airlines's first-year depreciation expense on the plane using the units-of-production method. Before calculating the first-year depreciation expense on the plane using the units-of-production method, calculate the depreciation expense per unit. Select the formula, then enter the amounts and calculate the depreciation per unit. Cost Residual value Useful life in units Depreciation per unit 48,500,000 $ 6,500,000 6,000,000 = $ 7 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. Units-of-production depreciation X Choose from any list or enter any number in the input fields and then click Check