On January 1, 2020, Logan Service Transportation Company purchased a used aircraft at a cost of...

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On January 1, 2020, Logan Service Transportation Company purchased a used aircraft at a cost of $49,200,000. Logan Service expects the plane to remain useful for five years (7,300,000 miles) and to have a residual value of $5,200,000. Logan Service expects to fly the plane 775,000 miles the first year, 1,275,000 miles each year during the second, third, and fourth years, and 2,700,000 miles the last year. Read the requirements. 1. Compute Logan Service'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 $ 8,800,000 for 2020 and $ 8,800,000 for 2021. Requirements b. Units-of-production method (Round the depreciation per unit of output to two decimal places to compute your final answers.) Using the units-of-production method, depreciation is for 2020 and for 2021. 1. Compute Logan Service'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 mille 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. Print Done - On January 1, 2020, Logan Service Transportation Company purchased a used aircraft at a cost of $49,200,000. Logan Service expects the plane to remain useful for five years (7,300,000 miles) and to have a residual value of $5,200,000. Logan Service expects to fly the plane 775,000 miles the first year, 1,275,000 miles each year during the second, third, and fourth years, and 2,700,000 miles the last year. Read the requirements. 1. Compute Logan Service'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 $ 8,800,000 for 2020 and $ 8,800,000 for 2021. Requirements b. Units-of-production method (Round the depreciation per unit of output to two decimal places to compute your final answers.) Using the units-of-production method, depreciation is for 2020 and for 2021. 1. Compute Logan Service'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 mille 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. Print Done -

Answer rating: 100% (QA)

Answer Lets calculate the depreciation for the remaining methods and the book value for the first ye... View the full answer