On January 1, 2016, AirFrance purchases an airplane for 14,400,000. The components of the airplane and...
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On January 1, 2016, AirFrance purchases an airplane for €14,400,000. The components of the airplane and their useful lives are as follows: Component Frame Engine Other Cost €7,200,000 4,800,000 2,400,000 AirFrance uses the straight-line method of depreciation. The asset is assumed to have no salvage value. Useful life 24 years 20 years 10 years 10. Under US GAAP, the entry to record depreciation expense on the asset at December 31, 2016 will include A) a debit to depreciation expense of €1,440,000 B) a debit to depreciation expense of €800,000. C) a credit to accumulated depreciation of €600,000. D) a credit to accumulated depreciation of €1,200,000. A) €800,000. B) €600,000. C) €1,200,000 D) €1,440,000. 11. Under IFRS, the entry to record the acquisition of the airplane would include A) a debit to Asset/ Airplane frame of €14,400,000. B) C) cannot be determined from the information given. a debit to Asset Airplane of €14,400,000. D) a debit to Asset/ Airplane engine of €4,800,000. 12. Under IFRS, the entry to record depreciation expense on the asset at December 31, 2016 will include a credit to accumulated depreciation of On January 1, 2016, AirFrance purchases an airplane for €14,400,000. The components of the airplane and their useful lives are as follows: Component Frame Engine Other Cost €7,200,000 4,800,000 2,400,000 AirFrance uses the straight-line method of depreciation. The asset is assumed to have no salvage value. Useful life 24 years 20 years 10 years 10. Under US GAAP, the entry to record depreciation expense on the asset at December 31, 2016 will include A) a debit to depreciation expense of €1,440,000 B) a debit to depreciation expense of €800,000. C) a credit to accumulated depreciation of €600,000. D) a credit to accumulated depreciation of €1,200,000. A) €800,000. B) €600,000. C) €1,200,000 D) €1,440,000. 11. Under IFRS, the entry to record the acquisition of the airplane would include A) a debit to Asset/ Airplane frame of €14,400,000. B) C) cannot be determined from the information given. a debit to Asset Airplane of €14,400,000. D) a debit to Asset/ Airplane engine of €4,800,000. 12. Under IFRS, the entry to record depreciation expense on the asset at December 31, 2016 will include a credit to accumulated depreciation of
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Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
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