Register now or log in to join your professional community.
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.
10.5 million dollar is the answer
10.5 Million Dollar is the correct answer.
Yes D is the Right Answer which is 10.5 Million $
10.5 million $ is the depreciation should be recorded in books.
