cost of $55,000,000. ShipEx expects the plane to remain useful for five years (7,000,000 miles) and...

 

Transcribed Image Text:

cost of $55,000,000. ShipEx expects the plane to remain useful for five years (7,000,000 miles) and to have a residual value of $5,000,000. ShipEx expects to fly the plane 800,000 miles the first year, 1,250,000 miles each year during the second, third, and fourth years, and 2,450,000 miles the last year. Read the requirements. 1. Compute ShipEx'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 $10,000,000 and $10,000,000 for 2021. b. Units-of-production method (Round the depreciation per unit of output to two decimal places to compute your final answers.) Using the units-of-production method, depreciation is for 2020 for $ 5,712,000 and $ 8,925,000 2021. c. Double-declining balance method cost of $55,000,000. ShipEx expects the plane to remain useful for five years (7,000,000 miles) and to have a residual value of $5,000,000. ShipEx expects to fly the plane 800,000 miles the first year, 1,250,000 miles each year during the second, third, and fourth years, and 2,450,000 miles the last year. Read the requirements. 1. Compute ShipEx'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 $10,000,000 and $10,000,000 for 2021. b. Units-of-production method (Round the depreciation per unit of output to two decimal places to compute your final answers.) Using the units-of-production method, depreciation is for 2020 for $ 5,712,000 and $ 8,925,000 2021. c. Double-declining balance method

Answer rating: 100% (QA)

To calculate ShipExs depreciation for the first two years on the plane using the straightline method ... View the full answer