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Sheridan Airlines purchased a Cessna as part of its fleet 3 years ago. The Cessna originally cost $1009500 and requires an engine replacement at an estimated cost of $179000. Sheridans uses IFRS. Assume that the engine was originally depreciated as a subcomponent of the plane, had a value of $118500 assigned to it and was depreciated on a straight-line basis over 5 years with no estimated salvage value. What is the gain or loss assigned to the disposal of the engine? O $0 O $47400 loss $107900 loss O $71100 loss

Sheridan Airlines purchased a Cessna as part of its fleet 3 years ago. The Cessna originally cost $1009500 and requires an engine replacement at an estimated cost of $179000. Sheridans uses IFRS. Assume that the engine was originally depreciated as a subcomponent of the plane, had a value of $118500 assigned to it and was depreciated on a straight-line basis over 5 years with no estimated salvage value. What is the gain or loss assigned to the disposal of the engine? O $0 O $47400 loss $107900 loss O $71100 loss

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Sheridan Airlines purchased a Cessna as part of its fleet 3 years ago. The Cessna originally cost $1009500 and requires an engine replacement at an estimated cost of $179000. Sheridans uses IFRS. Assume that the engine was originally depreciated as a subcomponent of the plane, had a value of $118500 assigned to it and was depreciated on a straight-line basis over 5 years with no estimated salvage value. What is the gain or loss assigned to the disposal of the engine? O $0 O $47400 loss $107900 loss O$71100 loss
Transcribed Image Text:Sheridan Airlines purchased a Cessna as part of its fleet 3 years ago. The Cessna originally cost $1009500 and requires an engine replacement at an estimated cost of $179000. Sheridans uses IFRS. Assume that the engine was originally depreciated as a subcomponent of the plane, had a value of $118500 assigned to it and was depreciated on a straight-line basis over 5 years with no estimated salvage value. What is the gain or loss assigned to the disposal of the engine? O $0 O $47400 loss $107900 loss O$71100 loss
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