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At the beginning of the? year, Aurora Airlines purchased a used Boeing jet for $53.5 million. Aurora expects the plane to remain useful for four years ?(4 million? kilometres) with a residual value of $5.5 million. Aurora expects the plane to be flown 1.3 million kilometres the first year.
Requirements
Problem 1. Calculate Aurora?'s ?first-year depreciation on the plane using the following? methods:
a. ?straight-line b. ?units-of-production c. ?reducing-balance (use 2 x the SL? rate).
Problem 2. Show the? plane's carrying amount at the end of the first year under each depreciation method.
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