4. At the beginning of the year, Alaska Freight Airlines purchased a used airplane for $43,000,000. Alaska Freight Airlines expects the plane to remain useful for five years (4,000,000 miles) and to have a residual value of $7,000,000. The company expects the plane to be flown 1,400,000 miles the first year. Compute Alaska Freight Airlines’ first-year depreciation on the plane using the following methods:
a. Straight-line
b. Units-of-production
Journalize the depreciation transactions
207
377
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