3.The Mark Company acquired a helicopter in 2018. At the time of acquisition, the cost of the jet frame was P32 million and the additional cost of the engine was P3.0 million. In 2021, the engine was replaced with a new one costing P5,000,000. At the time of replacement, the accumulated depreciation to date on the jet frame was P8,750,000 and on the engine was P2,000,000. Using the principles outlined in IAS 16, Property, Plant and Equipment, what amount should be derecognized at the date of replacement?
3.The Mark Company acquired a helicopter in 2018. At the time of acquisition, the cost of the jet frame was P32 million and the additional cost of the engine was P3.0 million. In 2021, the engine was replaced with a new one costing P5,000,000. At the time of replacement, the accumulated depreciation to date on the jet frame was P8,750,000 and on the engine was P2,000,000. Using the principles outlined in IAS 16, Property, Plant and Equipment, what amount should be derecognized at the date of replacement?
Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion
Section: Chapter Questions
Problem 29CE
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3.The Mark Company acquired a helicopter in 2018. At the time of acquisition, the cost of the jet frame was P32 million and the additional cost of the engine was P3.0 million.
In 2021, the engine was replaced with a new one costing P5,000,000. At the time of replacement, the accumulated
Using the principles outlined in IAS 16, Property, Plant and Equipment, what amount should be derecognized at the date of replacement?
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