On April 30, 2017, Oceanarium Corporation ordered a new passenger ship, which was delivered to the designated cruise port and available for use as of June 30, 2017. Overall, the cost of the ship was $97 million, with an estimated useful life of 12 years and residual value of $30 million. Oceanarium expects that the new ship, as a whole, will provide its greatest economic benefits in its early years of operation. After further research and discussion with management, it is determined that the ship consists of major parts with differing useful lives, residual values, and patterns of providing economic benefits:

The ship's first voyage took place on August 1, 2017. The ship sailed a total of 328,000 nautical miles in 2017. Oceanarium prepares financial statements in accordance with IFRS.
Instructions
(a) Identify the factors to consider in determining how to account for the purchase and depreciation of the ship.
(b) Prepare the journal entry to record the purchase of the ship, assuming that Oceanarium paid cash for the purchase.
(c) Prepare the journal entry(ies) to record depreciation expense for 2017.
(d) Explain any differences in part (a) above if Oceanarium prepares financial statements in accordance with ASPE instead of IFRS.
(e) Oceanarium Corporation's banker has requested financial statements prepared under IFRS to determine Oceanarium's ability to repay a long-term loan granted in 2016. What is the benefit to the banker of having each component of the ship depreciated separately?

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Residual value Pattern of Total output Part Engines (6) Hull Body Cost Useful life 8 years 10 years 15 years benefits (nautical miles) 7.0 million 7.8 million 12.6 million $975,000 $120,000 aries with activity early years life of body per engine $3,350,000 per engine $502,000 Highest in $87.8 milion $15.5 million Evenly over