By law, a fleet of aircraft must be subject to a major overhaul every 5 years as part of its scheduled maintenance program.Which of the following statements is correct?
A)The estimated cost of the overhaul should be disclosed as part of a continuity schedule in the notes to the financial statements.
B)The cost of the overhaul should be deferred and amortized.
C)The costs of the overhaul should be expensed as incurred.
D)An accrual should be made in each of the 5 years preceding the overhaul.

Question

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The Answer of By law, a fleet of aircraft must be subject to a major overhaul every 5 years as part of its scheduled maintenance program.Which of the following statements is correct?
A)The estimated cost of the overhaul should be disclosed as part of a continuity schedule in the notes to the financial statements.
B)The cost of the overhaul should be deferred and amortized.
C)The costs of the overhaul should be expensed as incurred.
D)An accrual should be made in each of the 5 years preceding the overhaul.

By Law, a Fleet of Aircraft Must Be Subject to a Major