Entity A is a listed company that operates the cruise ship business.

One of the cruise ships was purchased on 1 October 2011. This cruise ship is made up of three main components:

1. Cruises fabric
2. Cabins and entertainment area
3. Fittings propulsion system

Details of the cost of its components and their estimated useful lives are as below:

Components Original cost Depreciation basis

(1) Cruises fabric (hull, decks, etc.) $75,000,000 50 years straight-line

(2) Cabins and entertainment area fittings $37,500,000 15 years straight-line

(3) Propulsion system $25,000,000 useful life of 80,000 hours

On 30 September 2019, no further capital expenditure had been incurred on the cruise ship.

In the year ended 30 September 2019, the cruise had experienced a high level of engine trouble, which had cost Entity A considerable revenue loss and compensation costs.

The measured expired life of the propulsion system on 30 September 2019 was 60,000 hours. Due to the unreliability of the engines, a decision was made by Entity A on 1 October 2019 to replace the whole of the propulsion system at $35,000,000. The old propulsion system was also sold to a second-hand machinery shop with a loss on disposal of $4,250,000. The cash from the disposal was received on 20 October 2019. The expected life of the new propulsion system was 80,000 hours and in the year ended 30 September 2020, the cruise had used its engines for 20,000 hours.

At the same time as the propulsion system replacement, Entity A took this opportunity to upgrade the cabin and entertainment facilities at $15,000,000 and repaint the cruises fabric at $5,000,000 respectively. After the upgrade of the cabin and entertainment area fittings, it was estimated that their remaining useful life was 8 years.

For calculating depreciation, all the works on the cruise can be assumed to have been completed on 1 October 2019. All residual values can be taken as NIL.

REQUIRED:

1. Measure the depreciation expense of the Cruises Fabric for the year ended 30 September 2020. $
2. Measure the depreciation expense of the Cabins and entertainment area fittings for the year ended 30 September 2020. $
3. Measure the depreciation expense of the Propulsion system for the year ended 30 September 2020. $
4. Measure the carrying amount of the Cruises Fabric on 30 September 2020. $
5. Measure the carrying amount of the Cabins and entertainment area fittings on 30 September 2020. $
6. Measure the carrying amount of the Propulsion system on 30 September 2020. $
7. Measure the carrying amount of Entity As cruise ship on 30 September 2020. $
8. Measure the cash received from the sale of the old propulsion system on 20 October 2019. $