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On January $1,2020,$ QuickAir Transportation Company purchased a used aircraft at aAssume that on September $30,2020,$ AirOne, an international airline based in Germany,

purchased a Jumbo aircraft at a cost of $50,000,000($ is the symbol for the euro$).$

AirOne expects the plane to remain useful for four years miles$)$ and to have a

residual value of $6,000,000.$ AirOne will fly the plane $650,000$ miles during the

remainder of $2020.$

Read the requirements.

a$.$ Compute AirOne's depreciation on the plane for the year ended December $31,2020,$

using the straight$-$line method.

The depreciation on the plane for the year ended December $31,2020,$ using

the straight$-$line method is $$

cost of $$64,400,000.$ QuickAir expects the plane to remain useful for five years

miles$)$ and to have a residual value of $$6,400,000.$ QuickAir expects to fly the

plane $925,000$ miles the first year, $1,225,000$ miles each yearOn January $1,2020,$ QuickAir Transportation Company purchased a used aircraft at a

cost of $$64,400,000.$ QuickAir expects the plane to remain useful for five years

miles$)$ and to have a residual value of $$6,400,000.$ QuickAir expects to fly the

plane $925,000$ miles the first year, $1,225,000$ miles each year during the second, third,

and fourth years, and $2,400,000$ miles the last year.

Read the requirements.

Compute QuickAir'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 $2021.$

a$.$ Straight$-$line method

Using the straight$-$line method,

depreciation is

for $2020$ and

for $2021.$

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