Problem 1 (25 marks)

On January 1, 2022, Air Philippines acquired a P60,000,000

new airplane for a total cost of P200 million.
A breakdown of the costs to build the
airplane was given by the manufacturers:
Aircraft body
Engines (2) 80,000,000
Fitting out of aircraft:
Seats 20,000,000
Carpets 1,000,000
Electrical equipment- passenger seats 4,000,000
- cockpit 30,000,000
Equipment- food preparation 5,000,000