Use the Following Information to Answer the Next Three Questions

question 7

Multiple Choice

Use the following information to answer the next three questions.
On January 1, 2013, BelgianAir purchases an airplane for €14,400,000.The components of the airplane and their useful lives are as follows:
$\begin{array}{|c|c|c|}\hline \text { Component } & \text { Cost } & \text { Usefull life } \\\hline \text { Frame } & € 7,200,000 & 24 \text { years } \\\hline \text { Engine } & 4,800,000 & 20 \text { years } \\\hline \text { Other } & 2,400,000 & 10 \text { years } \\\hline\end{array}$ BelgianAir uses the straight-line method of depreciation.The asset is assumed to have no salvage value.
-Under IFRS, the entry to record depreciation expense on the asset at December 31, 2014 will include a credit to accumulated depreciation of

• A)€1,440,000.
• B)€1,200,000
• C)€800,000.
• D)€600,000.

Recognize the legal obligations and duties between agents and principals.

Comprehend the requirements and implications of specific types of agency relationships, such as gratuitous agency.

Identify the tort liabilities arising from an agent’s actions and the principal's responsibilities in such cases.

Understand the concept of authority in agency relationships, including apparent, express, and implied authority.

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Definitions:

Hourly Workers

Employees who are paid for each hour worked, as opposed to salaried workers who receive a set amount regardless of hours worked.

Salary Workers

Employees who are paid a fixed amount of money or remuneration on a regular basis, typically monthly or annually, not hourly.

Regular Earnings

Regular earnings refer to the normal income that an employee receives from their employer, including wages or salaries before deductions or bonuses.

Overtime Pay

Additional compensation provided to employees for hours worked beyond their standard working hours.