On October 1, 2020, Ocean Airways Ltd. purchased a new commercial aircraft for a total cost of $100 million. Included in the total cost are the aircraft’s two engines, at a cost of $10 million each, and the aircraft’s body, which costs $80 million. The estimated useful life of each of the aircraft’s two engines is 10 years, with a residual value of $1 million. The estimated useful life of the aircraft’s body is 10 years, with a residual value of $5 million. The entire aircraft’s useful life is limited to the life of the aircraft’s body.

(a) Prepare the journal entries required on October 1, 2020, and December 31, 2020, if Ocean Airways prepares financial statements in accordance with IFRS and uses straight-line depreciation.

(b) Explain any differences in the journal entries if Ocean Airways prepares financial statements in accordance with ASPE.