S$10-4$ Computing second$-$year depreciation and accumulated depreciation

Learning Objective $2$

At the beginning of $2016,$ Air Asia purchased a used airplane at a cost of $$40,000,000.$ Air Asia expects the plane to remain useful for eight years $(5,000,000$ miles$)$ and to have a residual value of $$5,000,000.$ Air Asia expects the plane to be flown $1,200,000$ miles the first year and $1,400,000$ miles the second year.

Requirements

Compute second$-$year $(2017)$ depreciation expense on the plane using the following methods:

Straight$-$line Units$-$of$-$production Double$-$declining$-$balance

Calculate the balance in Accumulated Depreciation at the end of the second year for all three methods.