On $1$ January $2019,$ Challenger Ltd acquired a new jet aircraft. The jet, which is to provide international mobility to the company$$s most senior executives, cost $$80$ million. The company intends keeping the jet until it is obsolete $($i$.$e$.20$ years$)$ at which time it is expected to have no residual value. Though the invoice did not provide a detailed analysis of the purchase price, it can reasonably be allocated as follows:

$ Million Additional Information

$$ Engines $40$ Estimated useful life $10$ years with no residual value

$$ Airframe $28$ Estimated useful life $20$ years with no residual value

$$ Furniture and fittings $8$ Estimated useful life $5$ years with no residual value

$$ Inspection costs $4$ Such inspections are required by aviation authorities every four

years

Additional information:

On $1$ July $2022,$ for reasons of convenience, the company undertook the requisite inspection six months earlier than required by the aviation authorities and replacement of carpets costing $$300,000.$ The cost of the inspection was $ $4400000$ and the next scheduled inspection is $1$ July $2026.$ The reporting period of Challenger Limited ends on December.

REQUIRED

$($a$)$

Briefly outline how Challenger Limited shall account for the subsequent costs$($Inspection & replacement of carpets$)$ during $2022,$ in accordance with IAS $16$ Property, plant and equipment.

$[10$ Marks$]$

$($b$)$

Calculate the depreciation charged to income statement for the year ended $31$ December $2022.$

$[5$ Marks$]$