Questions: S$7-8$ E$7-15$A

S$7-8.($Learning Objectives $3,4$: Computing partial year depreciation; selecting the best depreciation method$)$ Assume that on September $30206$ nganAir, the national airline of Switzerland, purchased an Airbus aircraft at a cost o $48,000,000$ oganAir expects the plane to remain useful for six years miles$)$ and to have a residual value of E$6,000,000.$ LoganAir will fly the plane $420,000$ miles during the remainder of $206.$ Compute LoganAir's depreciation on the plane for the year ended December $31,20$X$6,$ using the following methods:

a$.$ Straight$-$line

b$.$ Units$-$of$-$production

c$.$ Double$-$declining$-$balance

Which method would produce the highest net income for $20$X$6?$ Which method produces the lowest net income?

E$7-15$A$.($Learning Objective $1$: Determining the cost of PPE$)$ Ariana Self Storage purchased land, paying $$185,000$ cash as a downpayment and signing a $$200,000$ note payable for the balance. Ariana also had to pay delinquent property tax of $$4,500,$ title insurance costing $$3,000,$ and $$10,000$ to level the land and remove an unwanted building. The company paid $$63,000$ to add soil for the foundation and then constructed an office building at a cost of $$640,000.$ It also paid $$57,000$ for a fence around the property, $$15,000$ for the company sign near the property entrance, and $$9,000$ for lighting of the grounds. Determine the cost of Ariana's land, land improvements, and building.