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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.

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Question ajoutée par Utilisateur supprimé
Date de publication: 2015/02/28
Mir Mujtaba Ali
par Mir Mujtaba Ali , Internal Audit Manager , Confidential

10.5 million dollar is the answer

Muhammad Jalil Inayatullah
par Muhammad Jalil Inayatullah , Senior Accounts Officer , Raptor Global Logistics (Pvt) Ltd

10.5 Million Dollar is the correct answer.

Muhammad Waseem Akram
par Muhammad Waseem Akram , Assistant Manager Finance , Bindawood Group of Companies

Yes D is the Right Answer which is 10.5 Million $

Ahmed Siddiq
par Ahmed Siddiq , Billing specialist , Muhammed Al Ojaimi Contracting

10.5 million $ is the depreciation should be recorded in books.

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