Question - At the beginning of the year, Orbit Airways purchased a used Boeing aircraft at a cost of $45 million. Orbit expects the plane to remain useful for five years (3million miles) and to have a residual value of $5 million. Orbit expects the plane to be flown 750,000 miles the first year.
1. Compute Orbit'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 airolan's book value at the end of the first year under the straight line method.
Could you answer the question on the new Excel file? Thank you!