Prepare the journal entries required on october

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Reference no: EM132813999

On October 1, 2020, Ocean Airways Ltd. purchased a new commercial aircraft for a total cost of $110.00 million. Included in the total cost are the aircraft's 2 engines, at a cost of $11.00 million each, and the aircraft's body, which costs $88.00 million. The estimated useful life of each of the aircraft's 2 engines is 10 years, with a residual value of $1.10 million. The estimated useful life of the aircraft's body is 10 years, with a residual value of $5.50 million. The entire aircraft's useful life is limited to the life of the aircraft's body.

Problem 1: Prepare the journal entries required on October 1, 2020, and December 31, 2020, if Ocean Airways prepares financial statements in accordance with IFRS and uses straight-line depreciation.

Reference no: EM132813999

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