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i will be very please if the expert reply fast Tahan Cruise operates a low-cost air transport system. One of its airplanes was acquired on
i will be very please if the expert reply fast
Tahan Cruise operates a low-cost air transport system. One of its airplanes was acquired on 1 January 2018 for a total cost of RM710 million. The plane's cost components are as follows: Component Cost (RM Million) Useful life Cockpit 110 6 years Body 400 Elevator 200 5 years 10 years On 1 January 2020, it was discovered that there was an unexpected level of ecockpit trouble and the company decided to replace the cockpit with a new cockpit at a cost of RM200 million The expected life of the new cockpit was determined to be 10 years. At the same time the company did a limited upgrade to its elevator at a cost of RM50 million The remaining life of the elevator was revised to 9 years as at 1 January 2020. Required: Calculate the depreciation charge for the year ended 31 December 2020 and disclose the carrying amount of the airplanes on the stated date Step by Step Solution
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