[nurainatasha]

Hi Mike! I finally understand the question that I previously asked regarding the Delta but I can’t reply to that topic. So here I am. Thank you for the answer

However, now I’m stucked with Flightline Qs. The problem is with the engine. Can I calculate both the engines separately ? I look at the suggestion answer but I cannot relate the depreciation part of the engine.

I assume that the flying hours is divided by the two engines

1. For the previous year
* (10800/2) = 5400 hours

Engine 1= $9 000 000 – ( $500/flying hour x 5400 hour)
= $6 300 000

Engine 2 = $9 000 000 – ( $500/flying hour x 5400 hour)
= $6 300 000

This give the same carrying amount as the suggested answer which is $12 600 000

2. For the six months of 1/4/2008 to 30/9/2008

* (1200 / 2 ) = 600 hours

Carrying value Engine 1 = $6 300 000 – ($500/flying hour x 600 hour)
= $6 000 000

Carrying value Engine 2 = $6 300 000 – ($500/flying hour x 600 hour)
= $6 000 000

3. Until this part, I still understand, but after the accident, I lost because the answer is not the same as suggested.

From 1/10/2013 to 31/3/2009

* (1000/2) = 500 flying hours

Engine 1 ( Replaced)
= $10 800 000 – ( $300/flying hour x 500 )
= $ 10 650 000

Engine 2 ( Repair, useful live shortened to 15000 hour)
= $6 000 000 – ( $500/flying hour x 500)
=$ 5 750 000

I believe the mistake is because i divided it by two. But why we can get the answer if we divided the flying hour between both of the engine before the accident but not after the accident ?

The answer took the full 1000 hours for one engine, which I think will is 2000 hours for two machine. Really hope u understand this question. Thnk youu so much.

[nurainatasha]

Hi. I want to ask, regarding the Delta question. It is stated that Delga makes an annual trnasfer from rev surplus to retained earning in respect of excess dep. The amount of $6400 is taken from $32000/ 5 years.

But, I dont i understand why we cant make it like this
1. Year 1 n Year 2 depreciation is $ 20 000 for each year

2. Then it is revalued for item B to 112 000. So I divided it by the remaining useful lives of 5 years, which is the depreciation is $22 400. Hence the excess dep is $2400

3. Hence I minus the $2400 from $ 32000. Why is this wrong ? Thank youu.I really u can answr and understand my question.

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