At the beginning of the current year, Peace Company purchased a machine for P 7,000,000 and received a government grant of P 1,000,000 toward the capital cost. The machine is to be depreciated on a straight line basis over 5 years and estimated to have a residual value of P 500,000 at the end of this period 1. The journal entry to record the government grant as a deferred revenue: 2. The journal entry to recognize income from government grant:

At the beginning of the current year, Peace Company purchased a machine for P 7,000,000 and received a government grant of P 1,000,000 toward the capital cost. The machine is to be depreciated on a straight line basis over 5 years and estimated to have a residual value of P 500,000 at the end of this period 1. The journal entry to record the government grant as a deferred revenue: 2. The journal entry to recognize income from government grant:

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter7: Property Transactions: Basis, Gain And Loss, And Nontaxable Exchanges

Section: Chapter Questions

Problem 1BD

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