Problem

An airline company acquires an aircraft engine with a five-year guarantee . based on their past experience, it is estimated that the engine can be flown for a maximum of 10,000 hours . the average annual flying hours are expected to be 2,000;therefore, the company plans to depreciate the engine over five years .in reality , the number of flying hours is erratic. In a good year , an aircraft can be flown for 3,000 hours. What is the appropriate depreciation method the entity should adopt ?

a- Depreciate the aircraft evenly over five years.

b- Depreciate the aircraft evenly over three and half years.

c- Depreciate the aircraft based on the expected flying hours.