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This question is related with MFRS116

This question is related with MFRS116

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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This question is related with MFRS116

4. Tom Cruise operates a low-cost air transport system. One of its aeroplanes was acquired on 1 January x2 for a total cost of RM400 million. The plane's components are as follows: Component Cost RM million Useful life COMA Engine 120 3 years Body Furniture and fittings 500 10 years 120 5 years On 1 January x4, it was discovered that there was an unexpected level of engine trouble and the company decided to replace the engine with a new engine at a cost of RM150 million. The expected life of the new engine was determined be four years. At the same time the company did a limited upgrade to its furniture and fittings at a cost of RM50 million. The remaining life of the furniture and fitting was revised to eight years as at 1 January x4. It completed repainting the aeroplane at a cost of RM5 million. Required: Calculate the depreciation charge for the year ended 31 December x4 and disclose the carrying amount of the plane.
Transcribed Image Text:4. Tom Cruise operates a low-cost air transport system. One of its aeroplanes was acquired on 1 January x2 for a total cost of RM400 million. The plane's components are as follows: Component Cost RM million Useful life COMA Engine 120 3 years Body Furniture and fittings 500 10 years 120 5 years On 1 January x4, it was discovered that there was an unexpected level of engine trouble and the company decided to replace the engine with a new engine at a cost of RM150 million. The expected life of the new engine was determined be four years. At the same time the company did a limited upgrade to its furniture and fittings at a cost of RM50 million. The remaining life of the furniture and fitting was revised to eight years as at 1 January x4. It completed repainting the aeroplane at a cost of RM5 million. Required: Calculate the depreciation charge for the year ended 31 December x4 and disclose the carrying amount of the plane.
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