Assume that on September 30, 2020, Swiss, the national airline of Switzerland, purchased an Airbus aircraft at a cost of \(€ 40,000,000\) ( \(€\) is the symbol for the euro). Swiss expects the plane to remain useful for seven years \((5,000,000 \mathrm{~km})\) and to have a residual value of \(€ 5,000,000\). Swiss expects the plane to be flown \(500,000 \mathrm{~km}\) during the remainder of the first year ended December 31, 2020. Compute Swiss's depreciation on the plane for the year ended December 31, 2020, using the following methods:

a. Straight-line

b. Units-of-production

c. Double-diminishing-balance Which method would produce the highest net income for 2020 ? Which method produces the lowest net income? How does management choose which depreciation method to use?