On January 1, 2010, ABC Airline Service purchased an airplane for $37,700,000. ABC Airline Service expects the

Question:

On January 1, 2010, ABC Airline Service purchased an airplane for $37,700,000.
ABC Airline Service expects the plane to remain useful for six years and to have a residual value of $2,900,000. ABC Airline Service uses the straight-line method to depreciate its airplanes. ABC Airline Service flew the plane for three years and sold it on January 1, 2013, for $8,300,000.
1. Compute accumulated depreciation on the airplane at January 1, 2013 (same as December 31, 2012).
2. Record the sale of the plane on January 1, 2013.