Accounting

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Assume that at the beginning of 2000, Quick Travel, a FedEx competitor purchased a used Boeing 737 aircraft at a cost of 60,000,000. Quick Travel expects the plane to remain useful for 5 years (5 million miles) and to have a residual value of 5,000,000. Quick Travel expects to fly the plane 775,000 miles the first year 1,200,000 miles each year 2 through 4 and 625,000 miles the last year.

Compute Quick Travels first year depreciation on the plane using the following methods: Straight-line, units of production, double declining balance. Show the airplanes book value at the end of the first year under each depreciation method.
Show the airplane book value at the end of the first year under each method.

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