On March 31, 2014, JetHapppy Airways purchased a used Boeing jet at a cost of $40,000,000. JetHappy

Question:

On March 31, 2014, JetHapppy Airways purchased a used Boeing jet at a cost of $40,000,000. JetHappy expects to fly the plane for six years and expects it to have a residual value of $4,000,000. Compute JetHappy's amortization on the plane for the year ended December 31, 2014, using the straight-line method.