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On January 1,2020, Northeast USA Transportation Company purchased a used aircraft at a cost of...

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Accounting

On January 1,2020, Northeast USA Transportation Company purchased a used aircraft at a cost of $52,300,000. Northeast USA expects the plane to remain useful for five years (7,000,000 miles) have a residual value of $4,300,000. Northeast USA expects to fly the plane 725,000 miles the first year, 1,275,000 miles each year during the second, third, and fourth years, and 2,450,000 miles th year.
Read the requirements.
Compute Northeast USA's depreciation for the first two years on the plane using the straight-line method, the units-of-production method, and the double-declining balance method.
a. Straight-line method
Using the straight-line method, depreciation is for 2020 and for 2021.
Requirements
Compute Northeast USA's depreciation for the first two years on the plane using the following methods:
a. Straight-line method
b. Units-of-production method (round depreciation per mile to the closest cent)
c. Double-declining-balance method
Show the airplane's book value at the end of the first year under each depreciation method.
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