Fishing company Alta Mar S$.$A$.$ acquires a vessel for its operations on July $1,2021$ for

$$600,000.$ Alta Mar decides to depreciate vessel by components. For this purpose, it

separates asset into two components:

Main engine

Hull and others $($navigation and electronic equipment, auxiliary equipment, etc.$).$

Of total cost of vessel, $20\%$ is allocated to "main engine" and remaining $80\%$ to "hull

and other".

Company depreciates the components as follows:

Main engine:

$1$ Depreciation method: according to nautical miles traveled.

Maximum capacity of nautical miles to be traveled: $200,000.$

Residual value: $$0$

Hull and others:

Depreciation method: straight$-$line.

Useful life: $20$ years

Residual value: $$60,000$

Nautical miles traveled by vessel each year are as follows:Company values its property, plant and equipment according to Revaluation Model at

end of each year. Fair value at end of each year is as follows:

On March $1,2022,$ Alta Mar painted vessel's hull with an anticorrosive paint, which will

reduce frequency of maintenance. Total cost was $$40,000.$

On July $1,2022,$ annual maintenance of engine was performed at a cost of $$10,000.$

On May $1,2023$ company sells vessel for $$760,000$ cash. Company continues to

allocate $20\%$ to "main engine" and remaining $80\%$ to "hull and other".

Assume that all payments are in cash, no taxes, and Alta Mar S$.$A$.$ files annual financial

statements.

Use $4$ decimal places for your calculations $($for example, if the result is $1\mathrm{.}23456789$ use

$1\mathrm{.}2345.$

HELP: Remember to keep separate accounts for both components for both

Accumulated Depreciation and Fixed Asset Revaluation Reserve accounts.

REQUEST:

$($a$)$ Make accounting entries related to vessel for $2021.$

b$)$ Perform accounting entries related to vessel for $2022.$

c$)$ Make accounting entries related to vessel for $2023.$ First make journal entries to

recognize depreciation of both components of vessel for first $4$ months of $2023.$