During 2020, Peach Company purchased a machine for P7,000,000 and received a government grant of 1,000,000 toward the capital cost. The machine is to be depreciated on a straight-line method basis over 5 years and estimated to have a residual value of P500,000 at the end of this period. Required: Prepare journal entries using Deferred Income Approach and Deduction from Asset Approach
During 2020, Peach Company purchased a machine for P7,000,000 and received a government grant of 1,000,000 toward the capital cost. The machine is to be depreciated on a straight-line method basis over 5 years and estimated to have a residual value of P500,000 at the end of this period. Required: Prepare journal entries using Deferred Income Approach and Deduction from Asset Approach
Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization
Section: Chapter Questions
Problem 60P
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- During 2020, Peach Company purchased a machine for P7,000,000 and received a government grant of 1,000,000 toward the capital cost.
The machine is to be
Required:
Prepare
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