On January Flight Limited purchased a new lear jet. The jet, which is to provide international mobility to the companys most senior executives, cost $ million excluding VAT The company intends keeping the jet until it is obsolete ie years at which time it is expected to have no residual value.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: $ s

Engines Estimated useful life years with no residual value

Airframe Estimated useful life years with no residual value

Furniture and fittings Estimated useful life years with no residual value

Inspection costs Such inspections are required by aviation authorities every two years

Additional information:

On June 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 $ and the next scheduled inspection is June

Required:

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