Elite Leisure is a private limited liability company that operates a single cruise ship. The ship was acquired on January Details of the cost of the ship's components and their estimated useful lives are:
tablecomponenttableoriginal costmilliondepreciation basis years straightlineships fabric hull decks etc. years straightlinecabins and entertainment area fittings,useful life of hourspropulsion system,,
On January the company took the opportunity to do a limited upgrade to the cabin and entertainment facilities at a cost of million assume that none of the old fittings have been replaced and repaint the ship's fabric at a cost of million. After the upgrade of the cabin and entertainment area fittings it was estimated that their remaining life was years from the date of the upgrade
Calculate the carrying amount of the cabin of the ship at December and the related amounts which should be recognized as expenses for the year ended.
