Use the Following Information to Answer the Next Three Questions

question 37

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 the acquisition of the airplane would include

• A)a debit to Asset/ Airplane of €14,400,000.
• B)a debit to Asset/ Airplane frame of €14,400,000.
• C)a debit to Asset/ Airplane engine of €4,800,000.
• D)cannot be determined from the information given.

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Definitions:

Classical Definition

The Classical Definition, often referred to in the context of probability, is an approach where the probability of an event is calculated by dividing the number of favorable outcomes by the total number of equally likely outcomes.

Probability

Probability measures the likelihood of a particular event occurring, expressed as a number between 0 and 1, where 1 represents certainty.

Probability Density Function

A function that describes the likelihood of a random variable to take on a specific value, used in the realm of statistics.

Discrete Probability Distribution

A statistical function that represents the probability of occurrence of each value of a discrete random variable.