Assume that on September $30,2020,$ Luxuryair, the national airline of Switzerland, purchased an Airbus aircraft at a cost of $52,500,000($ is the symbol for the euro$).$

Luxuryair expects the plane to remain useful for fourteen years $(6,500,000km)$ and to have a residual value of $6,250,000.$ Luxuryair expects the plane to be flown

$575,000km$ during the remainder of the first year ended December $31,2020.$

Compute Luxuryair'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?

Compute Luxuryair's depreciation on the plane for the year ended December $31,2020.($Do not round until the final answer. Then round the depreciation expense

to the nearest whole number.$)$

a$.$ The depreciation on the plane for the year ended December $31,2020,$ using the straight$-$line method is $$