useful life of $40$ 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:

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.

Journal entry worksheet

Record the entry for the cost of aircraft on its purchase as per IFRS.

Record the entry for the depreciation of aircraft as per IFRS

Record the entry for the cost of aircraft on its purchase as per U$.$S$.$ GAAP.

Record the entry for the depreciation of aircraft as per U$.$S$.$ GAAP.

Record the entry for the depreciation of aircraft as per IFRS.

Record the entry for the depreciation of aircraft as per U$.$S$.$ GAAP.

Part B

Journal entry worksheet

Record the conversion entry needed for $12/31/20.$

Record the conversion entry needed for $12/31/21.$