On 1 January 2021, Flight Limited purchased a new lear jet. The jet, which is to provide international mobility to the companys 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 The company intends keeping the jet until it is obsolete (i.e. 20 years) at which time it is expected to have no residual value.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

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 $ 2 200 000 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.