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At the beginning of current year, Apple Company a plating machine for P5,400,000. The entity government grant of P400,000 toward this capita The machine is to be depreciated on a 20% reduci- asis over 10 years. The estimated residual value is

At the beginning of current year, Apple Company a plating machine for P5,400,000. The entity government grant of P400,000 toward this capita The machine is to be depreciated on a 20% reduci- asis over 10 years. The estimated residual value is

SWFT Individual Income Taxes
SWFT Individual Income Taxes
43rd Edition
ISBN:9780357391365
Author:YOUNG
Publisher:YOUNG
Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion
Section: Chapter Questions
Problem 29CE
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Pls prepare journal entries for both and show solutions

Problem 24-5 (IFRS) At the beginning of current year, Apple Company purchased a plating machine for P5,400,000. The entity received government grant of P400,000 toward this capital cost. a The machine is to be depreciated on a 20% reducing balance basis over 10 years. The estimated residual value is P200,000. Required: Prepare journal entries for the current year, assuming the grant is accounted for as deferred income and deduction from asset.
Transcribed Image Text:Problem 24-5 (IFRS) At the beginning of current year, Apple Company purchased a plating machine for P5,400,000. The entity received government grant of P400,000 toward this capital cost. a The machine is to be depreciated on a 20% reducing balance basis over 10 years. The estimated residual value is P200,000. Required: Prepare journal entries for the current year, assuming the grant is accounted for as deferred income and deduction from asset.
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