At the beginning of the year, Austin Airlines purchased a used airplane for $33,500,000. Austin Airlines expects the plane to remain useful for five years (4,000,000 miles) and to have a residual...

At the beginning of the year, Austin Airlines purchased a used airplane for $33,500,000. Austin Airlines expects the plane to remain useful for five years (4,000,000 miles) and to have a residual value of $5,500,000. The company expects the plane to be flown 1,100,000 miles during the first year.