Assume that at the beginning of 2010, northeast usa, a fedex competitor, purchased a used boeing 737 aircraft at a cost of $53,000,000. northeast usa expects the plane to remain useful for five years (six million miles) and to have a residual value of $5,000,000. northeast usa 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 1,400,000 miles the last year.1.compute northeast usa’s first-year depreciation on the plane using the following methods:
a. straight-line
b. units-of-production
c. double-declining-balance
2.show the airplane’s book value at the end of the first year under each depreciation method