Surat limited paid cash to acquire an aircraft on january 1, 2017, at a cost of 31,500,000 rupees. the aircraft has an estimated useful life of 50 years and no salvage value. the company has determined that the aircraft is composed of three significant components with the following original costs (in rupees) and estimated useful lives: component cost useful life fuselage 11,100,000 50 years engines 15,300,000 40 years interior 5,100,000 30 years 31,500,000 the u. s. parent of surat does not depreciate assets on a component basis, but instead depreciates assets over their estimated useful life as a whole.

Powell company began the 2018 accounting period with $40,000 cash, $86,000 inventory, $60,000 common stock, and $66,000 retained earnings. during 2018, powell experienced the following events: sold merchandise costing $58,000 for $99,500 on account to prentise furniture store. delivered the goods to prentise under terms fob destination. freight costs were $900 cash. received returned goods from prentise. the goods cost powell $4,000 and were sold to prentise for $5,900. granted prentise a $3,000 allowance for damaged goods that prentise agreed to keep. collected partial payment of $81,000 cash from accounts receivable. required record the events in a statements model shown below. prepare an income statement, a balance sheet, and a statement of cash flows. why would prentise agree to keep the damaged goods?