A British Tran jet costs $42,000,000 and is expected to fly 350,000,000 miles du

Question

A British Tran jet costs $42,000,000 and is expected to fly 350,000,000 miles during its 8-year life. Residual value is expected to be zero because the plane was used when acquired. If the plane travels 33,000,000 miles the first year, how much depreciation should British Tran record under the units-of-production method? (Round the depreciation per unit to two decimal places.) O A. $3,960,000 B. $10,500,000 O C. $5,250,000 O D. Cannot be determined from the data given Click to select your answer

Explanation / Answer

Depreciation in the first year = 42000000/350000000*33000000= $3960000 Option A is correct

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