Homework Help is Here – Start Your Trial Now!
Business
Accounting
Natalie Company purchased a machine for P 6, 600, 000 on January 1, 2014 and received a government grant of P600, 000 towards the capital cost. The policy is to treat the grant as a reduction in the cost of the asset. The machine is to be depreciated on a straight line basis over 10 years with a residual value of P500, 000. On January 1, 2016, the grant became fully repayable because of noncompliance with conditions.  What is the depreciation for 2014? a. 610, 000 b. 600, 000 c. 660, 000 d. 550, 000  What is the depreciation for 2016? a. 610, 000 b. 600, 000 c. 780, 000 d. 730, 000

Natalie Company purchased a machine for P 6, 600, 000 on January 1, 2014 and received a government grant of P600, 000 towards the capital cost. The policy is to treat the grant as a reduction in the cost of the asset. The machine is to be depreciated on a straight line basis over 10 years with a residual value of P500, 000. On January 1, 2016, the grant became fully repayable because of noncompliance with conditions.  What is the depreciation for 2014? a. 610, 000 b. 600, 000 c. 660, 000 d. 550, 000  What is the depreciation for 2016? a. 610, 000 b. 600, 000 c. 780, 000 d. 730, 000

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

Natalie Company purchased a machine for P 6, 600, 000 on January 1, 2014 and received a government grant of
P600, 000 towards the capital cost. The policy is to treat the grant as a reduction in the cost of the asset. The
machine is to be depreciated on a straight line basis over 10 years with a residual value of P500, 000. On January 1,
2016, the grant became fully repayable because of noncompliance with conditions.
 What is the depreciation for 2014?
a. 610, 000 b. 600, 000 c. 660, 000 d. 550, 000
 What is the depreciation for 2016?
a. 610, 000 b. 600, 000 c. 780, 000 d. 730, 000

Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
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