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Problem 1: On July 1, 2020 Q8Air bought an aircraft costing $30,000,000 and is expected to fly 250,000,000 miles during its 10-year life. Residual value is expected to be 0. The plane travels 5,000,000 miles the first year and 6,000,000 miles the second year. Under the double declining balance depreciation method, what would be the aircraft depreciation expense at the end of 2020?
Select one:
a. $2,700,000b. $3,000,000c. $6,000,000d. $5,400,000
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