We received delivery of a new airplane on 1st January. The total cost of the plane was $10 million. A break-down of the costs to build the plane was given by the manufacturers as: Aircraft body $3,000,000 Engines 4,000,000 Fitting out of aircraft: Seats 1,000,000 Carpets 50,000 Electrical equipment: Passenger seats 200,000 Cockpit 1,500,000 Food preparation equipment 250,000 All costs included installation and labor costs associated with that part. It was expected that the aircraft would be kept for 10 years and then sold. The main value of the aircraft at that stage is the body and the engines. The expected selling price is $2,100,000 with the body and engine retaining proportionate value.

We received delivery of a new airplane on 1st January. The total cost of the plane was $10 million. A break-down of the costs to build the plane was given by the manufacturers as:

Aircraft body $3,000,000

Engines 4,000,000

Fitting out of aircraft:

Seats 1,000,000

Carpets 50,000

Electrical equipment:

Passenger seats 200,000

Cockpit 1,500,000

Food preparation equipment 250,000

All costs included installation and labor costs associated with that part.

It was expected that the aircraft would be kept for 10 years and then sold. The main value of the aircraft at that stage is the body and the engines. The expected selling price is $2,100,000 with the body and engine retaining proportionate value.