related to PPE

Flightline is an airline which treats its aircraft as complex non?current assets, accounted for under
the historical cost model. The cost and other details of an aircraft are:
$000
Interior cabin fittings – installed 1 April 20X5 for 25,000 Estimated life = 5 years
Engine ? installed 1 April 20X5 for 9,000, 36,000 flying hours

In the year ended 31 March 20X9, the aircraft flew for 1,200 hours for the six months to
30 September 20X8.
On 1 October 20X8 the aircraft suffered a ‘bird strike’ accident which damaged the engine beyond
repair. This was replaced by a new engine with a life of 36,000 hours at cost of $10.8 million.
Flightline’s year end is 31 March 20X9.

Q) A wing was also damaged, but was repaired at a cost of $3 million. The accident also caused
cosmetic damage to the exterior of the aircraft which required repainting at a cost of
$2 million.
Identify the correct treatment for the $3 million repair costs to the wing and the $2 million
repainting of the aircraft which one should be capitalized and which one should be exp. ??