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The Raedy Company (Raedy) reports using IFRS and uses fair value for its valuation method under IAS 16. The company acquired a small helicopter for...

IFRS Property, plant and equipment

The Raedy Company (Raedy) reports using IFRS and uses fair value for its valuation method under IAS 16. The company acquired a small helicopter for its company yacht on January 1, 2011, at a cost of $110,000 with a service life of 20 years. The company estimates a zero residual value. The engine for the helicopter has to be replaced every 10 years. As of the date of acquisition, the engine has a cost of $40,000. The rotors for the helicopter have to be replaced every 5 years. As of the date of acquisition, the rotors have a cost of $10,000. On December 31, 2012, the fair value of the helicopter (total value), engine and rotors is determined to be $99,900, $33,000 and $7,500, respectively. On December 31, 2014, the fair value of the helicopter (total value), engine and rotors is determined to be $70,000, $21,000 and $1,000, respectively. Raedy uses the straight-line depreciation method and uses the depreciation-elimination method when revaluing PP&E. In addition, Raedy does not remove portions of the revaluation surplus account related to increases in depreciation from revaluation until the final disposition of the asset. Complete the following table. Show the journal entries for each year from 2011 through 2014 Component Depreciable base January 1, 2011 Remaining service life (years) Annual depreciation Net carrying value December 31, 2012 prior to revaluation Fair value December 31, 2012 Remaining service life (years) Annual depreciation Net carrying value December 31, 2014 prior to revaluation Helicopter Engine Rotors
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