Assume that at the beginning of 2010, northeast usa, a fedex competitor, purchased a used boeing 737 aircraft at a cost of $53,000,000. northeast usa expects the plane to remain useful for five years (six million miles) and to have a residual value of $5,000,000. northeast usa expects to fly the plane 775,000 miles the first year, 1,275,000 miles each year during the second, third, and fourth years, and 1,400,000 miles the last year.1.compute northeast usa’s first-year depreciation on the plane using the following methods:
a. straight-line
b. units-of-production
c. double-declining-balance
2.show the airplane’s book value at the end of the first year under each depreciation method

Answer

The answer and procedures of the exercise are attached in a microsoft excel document.  

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.  

two years ago, when picking flowers in the mountains back of yosemite valley, i found a book. it was blotted and storm-beaten; all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however; many of the inner pages were well preserved. and although all were more or less stained and torn, whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today; its granite pages have been torn and blurred by the same storms that wasted the castaway book.

two years ago, when picking flowers in the mountains back of yosemite valley; i found a book. it was blotted and storm-beaten, all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however, many of the inner pages were well preserved. and although all were more or less stained and torn; whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today, its granite pages have been torn and blurred by the same storms that wasted the castaway book.