The NCR Company purchased a varnishing machine for P150,000 on January 1, 2017. The company received a government grant of P13,500 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 PAS20 Government grants and government assistant, what should be the carrying amounts of the machine and the deferred income (DI) balance at December 31, 2018? a. Carrying amount – P75,000 ; DI balance – P6,750 b. Carrying amount – P112,500 ; DI balance – P10,125 c. Carrying amount – P81,750 : DI balance – P6,750 d. Carrying amount – P75,000 ; DI balance – P13,500
The NCR Company purchased a varnishing machine for P150,000 on January 1, 2017. The company received a government grant of P13,500 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 PAS20 Government grants and government assistant, what should be the carrying amounts of the machine and the deferred income (DI) balance at December 31, 2018? a. Carrying amount – P75,000 ; DI balance – P6,750 b. Carrying amount – P112,500 ; DI balance – P10,125 c. Carrying amount – P81,750 : DI balance – P6,750 d. Carrying amount – P75,000 ; DI balance – P13,500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The NCR Company purchased a varnishing machine for P150,000 on January 1, 2017.
The company received a government grant of P13,500 in respect of this asset. Company policy was todepreciate the asset over 4 years on a straight-line basis and to treat the grant as deferred income.
Under PAS20 Government grants and government assistant, what should be the carrying amounts of the machine and the deferred income (DI) balance at December 31, 2018?
The company received a government grant of P13,500 in respect of this asset. Company policy was to
Under PAS20 Government grants and government assistant, what should be the carrying amounts of the machine and the deferred income (DI) balance at December 31, 2018?
a. Carrying amount – P75,000 ; DI balance – P6,750
b. Carrying amount – P112,500 ; DI balance – P10,125
c. Carrying amount – P81,750 : DI balance – P6,750
d. Carrying amount – P75,000 ; DI balance – P13,500
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