Question: Computing second-year depreciation and accumulated depreciation At the beginning of 2016, Logan Service purchased a used airplane at a cost of $46,000,000. Logan Service expects the plane to remain useful for eight years (6,000,000 miles) and to have a residual value of $4,000,000. Logan Service expects the plane to be flown 1,500,000 miles the first year and 1,200,000 miles the second year. Requirements
1. Compute second-year (2017) depreciation expense on the plane using the following methods:
a. Straight-line
b. Units-of-production
c. Double-declining-balance
2. Calculate the balance in Accumulated Depreciation at the end of the second year for all three methods.