On $1$ January $2021,$ Flight Limited purchased a new lear jet. The jet, which is to provide international mobility to the company$$s most senior executives, cost $$40$ million $($excluding VAT$).$ The company intends keeping the jet until it is obsolete $($i$.$e$.20$ years$)$ at which time it is expected to have no residual value. Although the invoice did not provide an analysis of the purchase price, it can reasonably be allocated as follows:

$ $000`$s Additional Information

$$ Engines $20,000$ Estimated useful life $10$ years with no

residual value

$$ Airframe $14,000$ Estimated useful life $20$ years with no

residual value

$$ Furniture and fittings $4,000$ Estimated useful life $5$ years with no

residual value

$$ Inspection costs $2,000$ Such inspections are required by aviation authorities every two years

Additional information:

On $30$ June $2022,$ for reasons of convenience, the company undertook the requisite inspection six months earlier than required by the aviation authorities. The cost of the inspection was $ $2200000$ and the next scheduled inspection is $30$ June $2024.$

Required:

Briefly outline how Flight Limited shall account for the inspection cost only during $2022,$ in accordance with IAS $16$ Property, plant and equipment. You must show all appropriate workings including cost and depreciation for the respective periods.

Inspectionc Costs in $2022$:

The inspection cost in $2022$ was $$2,200,000.$ Since Flight Limited performed the inspection six months earlier than required, it should only account for half of the annual inspection cost in $2022.$ So the answer should have been $$2,200,000/2$yrs$*6/12=$ $ $550,000$ for $2022$ add the inspection cost done in $2021$ costing $ $2,000,000$ for $2$yrs: $$2,000,000/2=$$$1,000,000.$The total inspection cost for $2022=$ $ $1,550,000.$

The answer i got for this question is firstly $$408,333$ and secondly $$1,000,000$