Surat Limited paid cash to acquire an aircraft on January 1, 2020, at a cost of 34,700,000 rupees The aircraft has an estimated useful life of 50 years and no salvage value The company has determined that the aircraft is composed of three significant components with the following original costs (in rupees) and estimated useful lives Component Cost Useful Life Fuselage 12,800,000 50 years Engines 16,800,000 40 years Interior 5,100,000 30 years 34,700,000 The U S parent of Surat does not depreciate assets on a component basis, but instead depreciates assets over their estimated useful life as a whole Assume that a foreign company using IFRS is owned by a company using U S GAAP Thus, IFRS balances must be converted to U S GAAP to prepare consolidated financial statements Ignore income taxes Required a Prepare journal entries for this aircraft for the years ending December 31, 2020, and December 31, 2021, under (1) IFRS and (2) U S GAAP b Prepare the entry(ies) that the U S parent would make on the December 31, 2020, and December 31, 2021, conversion worksheets to convert IFRS balances to U S GAAP Prepare journal entries for this aircraft for the years ending December 31, 2020, and December 31, 2021, under (1) IFRS and (2) U S GAAP (If no entry is required for a transaction event, select No journal entry required in the first account field ) No Date General Journal Debit Credit 1 01 01 2020 Aircraft 34,700,000 Cash 34,700,000 2 12 31 2020 Depreciation expense Accumulated depreciation Aircraft 3 01 01 2020 Aircraft 34,700,000 Cash 34,700,000 4 12 31 2020 Depreciation expense Accumulated depreciation Aircraft 5 12 31 2021 Depreciation expense Accumulated depreciation Aircraft 6 12 31 2021 Depreciation expense Accumulated depreciation Aircraft Prepare the entry(ies) that the U S parent would make on the December 31, 2020, and December 31, 2021, conversion worksheets to convert IFRS balances to U S GAAP (If no entry is required for a transaction event, select No journal entry required in the first account field ) No Date General Journal Debit Credit 1 12 31 2020 Accumulated depreciation Aircraft Depreciation expense 2 12 31 2021 Accumulated depreciation Aircraft Depreciation expense

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Surat Limited paid cash to acquire an aircraft on January 1, 2020, at a cost of 34,700,000 rupees. The aircraft has an estimated useful life

Surat Limited paid cash to acquire an aircraft on January 1, 2020, at a cost of 34,700,000 rupees. The aircraft has an estimated useful life of 50 years and no salvage value. The company has determined that the aircraft is composed of three significant components with the following original costs (in rupees) and estimated useful lives:

Component	Cost	Useful Life
Fuselage	12,800,000	50	years
Engines	16,800,000	40	years
Interior	5,100,000	30	years
	34,700,000

The U.S. parent of Surat does not depreciate assets on a component basis, but instead depreciates assets over their estimated useful life as a whole.

Assume that a foreign company using IFRS is owned by a company using U.S. GAAP. Thus, IFRS balances must be converted to U.S. GAAP to prepare consolidated financial statements. Ignore income taxes.

Required:

a. Prepare journal entries for this aircraft for the years ending December 31, 2020, and December 31, 2021, under (1) IFRS and (2) U.S. GAAP.
b. Prepare the entry(ies) that the U.S. parent would make on the December 31, 2020, and December 31, 2021, conversion worksheets to convert IFRS balances to U.S. GAAP.

Prepare journal entries for this aircraft for the years ending December 31, 2020, and December 31, 2021, under (1) IFRS and (2) U.S. GAAP. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

No	Date	General Journal	Debit	Credit
1	01/01/2020	Aircraft	34,700,000
		Cash		34,700,000

2	12/31/2020	Depreciation expense
		Accumulated depreciation - Aircraft

3	01/01/2020	Aircraft	34,700,000
		Cash		34,700,000

4	12/31/2020	Depreciation expense
		Accumulated depreciation - Aircraft

5	12/31/2021	Depreciation expense
		Accumulated depreciation - Aircraft

6	12/31/2021	Depreciation expense
		Accumulated depreciation - Aircraft

Prepare the entry(ies) that the U.S. parent would make on the December 31, 2020, and December 31, 2021, conversion worksheets to convert IFRS balances to U.S. GAAP. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)