Assume that on September 30, 2017, Flyair, an international airline based in Germany, purchased a Jumbo aircraft at a cost of euro 45,000,000 (euro is the symbol for the euro). Flyair expects the plane to remain useful for four years (4,000,000 miles) and to have a residual value of euro 6,000,000. Flyair will fly the plane 350 comma 000 miles during the remainder of 2017. Compute LuxAir's depreciation on the plane for the year ended December 31, 2015, using the following methods: a. Straight-line
b. Units-of-production
c. Double-declining-balance

Which method would produce the highest net income for 2015? Which method produces the lowest net income?

Highest income=The units of Production method of depreciation with $3,412,500

Lowest income=double declining depreciation method with $18,000,000

Explanation:

a) Using Straight line depreciation method

(Cost of value - Salvage value)/ Useful life =(45,000,000 -6,000,000)/5 =$7,800,000

b)Using  Units-of-production depreciation method

Depreciation Expense = (Cost – Salvage value) x (Number of units produced / Life in number of units)

=45,000,000 -6,000,000) x (350,000/4,000,000)= $3,412,500

b)Using Double-declining-balance  depreciation method

Depreciation Expense = Beginning book value x Rate of depreciation

Rate of depreciation = 100% / useful life x 2= 100/5 x2 = 40 %

Depreciation expense = 40 % x $45,000,000 =$18,000,000

or you use this method directly= 45,000,000/5 x 2= $18,000,000

Now the highest income will come from the depreciation with least expense and from our calculation,  the depreciation method with the least expense is from The units of Production method with $3,412,500

In the same vein, the lowest income will come from the most depreciation expense, therefore the most depreciation expense is from the double declining method with $18,000,000

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.

answer; offer in store wine and beer samples;