South Airlines purchased a 747 aircraft on January 1, 2017, at a cost of $35,000,000. The estimated useful life of the aircraft is 20 years, with an estimated salvage value of $5,000,000. On January 1, 2020 the airline revises the total estimated useful life to 15 years with a revised salvage value of $3,500,000. Compute the depreciation and book value at December 31, 2019 using the straight-line method and the double-declining-balance method.

purchase cost January 1, 2017 = $35,000,000

useful life 20 years, salvage value $5,000,000

depreciation expense per year

straight line method = ($35,000,000 - $5,000,000) / 20 = $1,500,000 per year

accumulated depreciation = $4,500,000

book value on December 31, 2019 = $35,000,000 - ($1,500,000 x 3) = $30,500,000

double-declining-balance method:

depreciation expense year 1 = 2 x 1/20 x $35,000,000 = $3,500,000

depreciation expense year 2 = 2 x 1/20 x $31,500,000 = $3,150,000

depreciation expense year 3 = 2 x 1/20 x $28,350,000 = $2,835,000

accumulated depreciation = $9,485,000

book value on December 31, 2019 = $35,000,000 - $9,485,000 = $25,515,000

answer( isp );

answer///the factor market;