On January$1,20202020,$ Best ShippingBest Shipping Transportation Company purchased a used aircraft at a cost of $ $51$ comma $200$ comma $000$$$51,200,000.$ Best ShippingBest Shipping expects the plane to remain useful for fivefive years $(7$ comma $300$ comma $0007,300,000$miles$)$ and to have a residual value of $ $5$ comma $200$ comma $000$$$5,200,000.$ Best ShippingBest Shipping expects to fly the plane $875$ comma $000875,000$ miles the first$$ year, $1$ comma $300$ comma $0001,300,000$ miles each year during the$$ second, third, and fourth$$ years, and $2$ comma $525$ comma $0002,525,000$ miles the last year.

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Part $1$

$1.$ Compute Best ShippingBest Shipping$\text{'}$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 $2020$ and

for $2021.$

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Requirements

$1.$

Compute Best ShippingBest Shipping$\text{'}$s depreciation for the first two years on the plane using the following$$ methods:

a$.$

$$Straight$-$line method

b$.$

$$Units$-$of$-$production method$($round depreciation per mile to the closest$$ cent$)$

c$.$

$$Double$-$declining$-$balance method

$2.$

Show the$$ airplane's book value at the end of the first year under each depreciation method.