Use the following information to answer the next three questions.
On January 1, 2013, BelgianAir purchases an airplane for €14,400,000.The components of the airplane and their useful lives are as follows:
$\begin{array}{|c|c|c|}
\hline \text { Component } & \text { Cost } & \text { Usefull life } \
\hline \text { Frame } & € 7,200,000 & 24 \text { years } \
\hline \text { Engine } & 4,800,000 & 20 \text { years } \
\hline \text { Other } & 2,400,000 & 10 \text { years } \
\hline
\end{array}$ BelgianAir uses the straight-line method of depreciation.The asset is assumed to have no salvage value.
-Under IFRS, the entry to record the acquisition of the airplane would include

Question

Use the following information to answer the next three questions.
On January 1, 2013, BelgianAir purchases an airplane for €14,400,000.The components of the airplane and their useful lives are as follows:
 $\begin{array}{|c|c|c|}
\hline \text { Component } & \text { Cost } & \text { Usefull life } \
\hline \text { Frame } & € 7,200,000 & 24 \text { years } \
\hline \text { Engine } & 4,800,000 & 20 \text { years } \
\hline \text { Other } & 2,400,000 & 10 \text { years } \
\hline
\end{array}$ BelgianAir uses the straight-line method of depreciation.The asset is assumed to have no salvage value.
-Under IFRS, the entry to record the acquisition of the airplane would include

Quizplus · Accepted Answer

Under IFRS, components of an asset with different useful lives should be depreciated separately. Therefore, the acquisition entry would include debits to separate accounts for each component, such as the engine for €4,800,000.

Use the Following Information to Answer the Next Three Questions