At the beginning of the year, Hope We Land Airlines purchased a used airplane for $34,420,000.

Hope We Land Airlines expects the plane to remain useful for 5 years, or 3,950,000 miles and to have a residual value of $5,560,000.

The company expects the plane to be flown 1,060,000 during the first year.

Note: When inputting a percentage value, do not include the % symbol, and round your answer to two decimal places (e.g., 50.35).

1. Compute Hope We Land Airlines first-year depreciation expense on the plane using the following methods:

a. Straight-line Method = `(` Cost-Residual Value`)`  `/`  Time = Depreciation Per Year

Straight-line Method = `(`  `-` `)`  `/` `(` `)`  `=` $ per year

b. Units of Production = `(` Cost-Residual Value`)`  `/`  Usage = Depreciation Per Unit

Straight-line Method = `(`  `-` `)`  `/` `(` `)`  `=` $ per unit

Depreciation per Unit `*`  Miles `=`  Depreciation

X =

c. Double-declining balance

1 `/` `(` # of years`)`  `=`  Percent of Straight Line Depreciation

1 / =  `%` 

2 X Percent of Straight Line Depreciation = Percent of Double Declining Depreciation

2 X `%`  `=`  `%` 

Percent of Double Declining Depreciation X Cost `=`  Depreciation

`%` X $ `=`  $

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

Account	Straight-line	Units-of-production	Double-declining-balance
Cost
Less: Accumulated Depreciation
Book Value