Gold Sands Cruise Berhad owns a cruise ship and operates cruises around Malaysia. The ship was purchased on 1 October 2005.

Component	Original Cost (RM million)	Depreciation Basis
Ships body (hull, deck and others)	300	25 years straight-line
Cabins and entertainment area fittings	150	12 years straight-line
Propulsion/ engine system	100	Useful life of 40,000 hours

At 30 September 2013 no further capital expenditure had incurred on the ship.

In the year ended 30 September 2013, the ship had experienced a high level of engine trouble which has cost the company considerable lost revenue and compensation costs. The measured expired life of the propulsion system at 30 September 2013 was 30,000 hours. Due to the unreliability of the engines, a decision was taken in early October 2013 to replace the whole of the propulsion system at a cost of RM140 million. The excepted life of the new propulsion system was 50,000 hours and in the year ended 30 September 2014 the ship had used its propulsion system for 5,000 hours.

At the same time as the propulsion system replacement, the company took the chance to do a limited upgrade to the cabin and entertainment facilities at a cost of RM60 million and repaint the ships body at a cost of RM20 million. After the upgrade of the cabin and entertainment area fittings it was estimated that their remaining life was five years (from the date of the upgrade).

For purpose of calculating depreciation, all the work on the ship can be assumed to have been completed on 1 October 2013. Residual value of all the components can be taken as nil at the end of the useful life.

Required:

Prepare the computation of the depreciation and the carrying amount of Gold Sands Cruises ship at 30 September 2013 and 30 September 2014. You are also required to explain the accounting treatment of each of the three components