Dunkirk plc acquired a plane on 1 January 2012 for 6 million. It has been advised that
Question:
Dunkirk plc acquired a plane on 1 January 2012 for £6 million. It has been advised that the plane has a useful life of ten years, but its seats and galleys will require replacement every two years at a cost of £500,000.
Required:
(a) What will be the depreciation written off in the year ended 31 December 2012?
(b) Explain how you propose to account for the replacement of seats and galleys.
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Related Book For
Financial Accounting An Introduction
ISBN: 9780273737650
2nd Edition
Authors: Mr Barry Elliott, Mr Augustine Benedict
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