A company acquired an aircraft for $120 million,

with

the cost consisting of the air frame, $60 million;

the engine,$40 million; and other components, $20 million. The

company applies the cost model and uses the straight-line

method of depreciation. The aircraft has a total estimated

useful life of20 years and no residual value. The estimated

useful lives of the components are as follows:

Air frame                  20 years

Engine                    16 years

Other components    4 years

Under IFRS, what amount should the company record as

annual depreciation expense?

a. $3 million.

b. $6 million.

c. $6.5 million.

d. $10.5 million.