An aircraft could be considered as having the following components.
Fuselage - 20000 with useful life 20 years, undercarriage - 5000 with useful life of 500 landings, engine - 8000 with useful life 1600 flying hours. You are required to calculate depreciation for the year.
In the above question the following piece of information is given "Depreciation at the end of the first gear, in which 150 flights totaling 400 hours were made would then be" this piece of information is not provided anywhere in the question or related to any previous question.
Is it assumed that the aircraft made 150 flights with 400 flight hours in the first year or am i missing something? Can anybody please help me out, it'd be really appreciated.
Ask the Tutor ACCA FR
FR: Depreciation of the aircraft, BPP workbook pg no 48.
You use the information to help with calculating the depreciation on the engines and undercarriage. The engines cost 8,000 and this is to be spread over the 1,600 flying hours, so depreciation of 5 per flying hour (8,000/1,600).
As we've flown 400 hours this year then a total of 2,000 this year (400 x 5).
It is then the same process for the undercarriage. Try it and see how you get on.
Thanks
Could you please provide details explanation?
What specifically would you like further details on? Happy to provide if you let me know specifically what you do not understand.
Thanks
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