Assume that at the beginning of 2010, northeast usa, a fedex competitor, purchased a used boeing 737 aircraft at a cost of $53,000,000. northeast usa expects the plane to remain useful for five years (six million miles) and to have a residual value of $5,000,000. northeast usa expects to fly the plane 775,000 miles the first year, 1,275,000 miles each year during the second, third, and fourth years, and 1,400,000 miles the last year.1.compute northeast usa’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 airplane’s book value at the end of the first year under each depreciation method

Answer

The answer and procedures of the exercise are attached in a microsoft excel document.  

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.  

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.