At the starting of the year, Fun Ships cruises line purchased a cruise ship at a cost of $55 million. Fun Ships expects the ship to remain useful for 10-years (1,000,000 miles) and to encompass a residual value of $5 million.
Fun Ships puts 80,000 miles on the ship the first year and 115,000 miles the second year.
a) find out Fun Ships' first and second year depreciation on the cruise ship by using the given methods:
Straight-line Units-of-production Double declining balance.