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Exotic Leisure is a Private Limited Company that operates a cruise ship. The ship was

acquired on $1$ October $2007.$ Details of the cost of the ship's components and their estimated

useful lives are:

Component Original cost Sm Depreciation basis

Ship's hull, decks etc $50020$ years straight$-$line

Propulsion system $200$ Useful life of $40,000$

hours

At $30$ September $2014$ no further capital expenditure had been incurred on the ship.

The measured expired life of the propulsion system at $30$ September $2014$ was $30,000$

hours. Due to the unreliability of the engines, a decision was taken in early October

$2014$ to replace the whole of the propulsion system at a cost of $$150$ million. The

expected life of the new propulsion system was $60,000$ hours and during the year

ended $30$ September $2015$ the ship had used its engines for $5,000$ hours.

The company decided to repaint the ship's hull at a cost of $$25$ million. For the

purpose of calculating depreciation, all the work on the ship can be assumed to have

been completed on $1$ October $2014.$ The residual value of the hull and Propulsion

system can be taken as nil.

Required: Compute charge to SOPL on account of the Cruise Ship $($depreciation and

other charges$)$ And the carrying value of the ship as on $30$ September $2014$ and $2015$

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