Homework Help is Here – Start Your Trial Now!
Business
Accounting
22) Maker Company purchased a varnishing machine for P450,000 on January 1. 2023. The company received a government grant of P40,500 in respect of this asset. Company policy was to depreciate the asset over 4 years on a straight line basis and to treat the grant as deferred income. Under PAS 20 – Government Grant and Government Assistance, what should be the carrying amount of the machine and the deferred income balance at December 31. 2024 of Maker Company? CA of Machine Balance of Grant CA of Machine Balance of Grant A. C. 225,000 337,500 20.250 245.250 20.250 В. 30,375 D. 225,000 40,500

22) Maker Company purchased a varnishing machine for P450,000 on January 1. 2023. The company received a government grant of P40,500 in respect of this asset. Company policy was to depreciate the asset over 4 years on a straight line basis and to treat the grant as deferred income. Under PAS 20 – Government Grant and Government Assistance, what should be the carrying amount of the machine and the deferred income balance at December 31. 2024 of Maker Company? CA of Machine Balance of Grant CA of Machine Balance of Grant A. C. 225,000 337,500 20.250 245.250 20.250 В. 30,375 D. 225,000 40,500

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
22
22) Maker Company purchased a varnishing machine for P450.,000 on January 1, 2023. The company received a government grant of P40,500 in respect of this asset. Company policy was to depreciate the asset over 4 years on a straight line basis and to treat the grant as deferred income. Under PAS 20 – Government Grant and Government Assistance, what should be the carrying amount of the machine and the deferred income balance at December 31. 2024 of Maker Company? CA of Machine Balance of Grant CA of Machine Balance of Grant А. 225,000 337,500 20,250 30,375 C. 245.250 20,250 В. D. 225,000 40,500
Transcribed Image Text:22) Maker Company purchased a varnishing machine for P450.,000 on January 1, 2023. The company received a government grant of P40,500 in respect of this asset. Company policy was to depreciate the asset over 4 years on a straight line basis and to treat the grant as deferred income. Under PAS 20 – Government Grant and Government Assistance, what should be the carrying amount of the machine and the deferred income balance at December 31. 2024 of Maker Company? CA of Machine Balance of Grant CA of Machine Balance of Grant А. 225,000 337,500 20,250 30,375 C. 245.250 20,250 В. D. 225,000 40,500
Expert Solution
steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Loanable Funds Theory
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS