Computing first-year depreciation and book valueat the beginning of the year, austin airlines purchased a used airplane for $33,500,000. austin airlines expects the planeto remain useful for five years (4,000,000 miles) and to have a residual value of $5,500,000. the company expects theplane to be flown 1,100,000 miles during the first year. requirementsl compute austin airlines’s first-year depreciation expense on the plane using the following methods: a. straight-lineb. units-of-productionc double-declining-balancez show the airplane's book value at the end of the first year for all three methods.

Depreciation under 3 methods:

A. SLM: Depreciation $5,600,000

B. Units Of Production: Depreciation $9,212,500

C. Double Declining Method:  Depreciation $13,400,000

Explanation:

A. Under Straight line method, depreciation as computed as:

Depreciation = $5,600,000

Book Value at the end of first year = $27,900,000

B. Units Of Production Method:

  Depreciation:

= 9,212,500

Book Value at the end of first year = 24,287,500

C. Double Declining Method: Depreciation=

= 20% per annum

Under double decline , at double the rate i.e 40%

Thus, Depreciation = 40% of 33,500,000= 13,400,000

Book Value at the end of the year = 33,500,000- 13,400,000 = 20,100,000

hi there, i would say your answer is:

b. there is a fixed quantity of resources and technology available.

hope that : )