On January$1,$

$20242024,$

Northeast AirlinesNortheast$$Airlines

purchased a used airplane for

$ $65$ comma $600$ comma $000$$$65,600,000.$

Northeast AirlinesNortheast$$Airlines

expects the plane to remain useful for

fourfour

years

$(6$ comma $000$ comma $0006,000,000$

$$miles$)$ and to have a residual value of

$ $5$ comma $600$ comma $000$$$5,600,000.$

The company expects the plane to be flown

$1$ comma $100$ comma $0001,100,000$

miles during the first year.

Read the

requirements

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$.$

Question content area bottom

Part $1$

Requirement $1$a$.$ Compute

Northeast AirlinesNortheast$$Airlines$\text{'}$s

$$first$-$year depreciation expense on the plane using the$$ straight$-$line method.

Begin by selecting the formula to calculate the$$ company's first$-$year depreciation expense on the plane using the$$ straight$-$line method. Then enter the amounts and calculate the depreciation for the first year.

Part $2$

$($

$$

$-$

$$

$)$

$$

$=$

Straight$-$line depreciation

$($

$$

$-$

$$

$)$

$$

$=$

$$

Part $3$

Requirement $1$b$.$ Compute

Northeast AirlinesNortheast$$Airlines$\text{'}$s

$$first$-$year depreciation expense on the plane using the$$ units$-$of$-$production method.

Before calculating the$$ first$-$year depreciation expense on the plane using the$$ units$-$of$-$production method, calculate the depreciation expense per unit. Select the$$ formula, then enter the amounts and calculate the depreciation per unit.

Part $4$

$($

$$

$-$

$$

$)$

$$

$=$

Depreciation per unit

$($

$$

$-$

$$

$)$

$$

$=$

$$

Part $5$

$$Now$,$ select the$$ formula, enter the$$ amounts, and calculate the$$ company's first$-$year depreciation expense on the plane using the$$ units$-$of$-$production method.

$$

$$

$$

$=$

Units$-$of$-$production depreciation

$$

$$

$$

$=$

$$

Part $6$

Requirement $1$c$.$ Compute

Northeast AirlinesNortheast$$Airlines$\text{'}$s

$$first$-$year depreciation expense on the plane using the$$ double$-$declining$-$balance method.

Begin by selecting the formula to calculate the$$ company's first$-$year depreciation expense on the plane using the$$ double$-$declining$-$balance method. Then enter the amounts and calculate the depreciation expense for the first year.$($Enter $"0"$ for items with a zero$$ value.$)$

Part $7$

$$

$$

$$

$$

$$

$$

$$

Double$-$declining$-$

$($

$$

$-$

$$

$)$

$$

$=$

balance depreciation

$($

$$

$-$

$$

$)$

$$

$=$

$$

Part $8$

Requirement $2.$ Show the$$ airplane's book value at the end of the first year for all three methods.

$$

Straight$-$Line

Units$-$of$-$production

Double$-$declining$-$balance

Cost

$$

$$

$$

Less: Accumulated Depreciation

$$

$$

$$

Book Value

$$

$$

$$