Reference no: EM132545788

Question - At the beginning of the year, Wizzair purchased a used aircraft at a cost of $25,000,000. Wizzair expects the plane to remain useful for 12 years (or 4 million miles) and to have an estimated residual value of $1,000,000. Wizzair flies the plane 410,000 miles the first year and 300,000 miles the second year. Compute first-year and second-year depreciation expense, accumulated depreciation and ending book value on the plane using the following methods:

a. Straight-line

b. Units-of-production

c. Double-declining-balance