Problem 24-5 (IFRS) At the beginning of current year, Apple Company purchased a plating machine for P5,400,000. The entity received a government grant of P400,000 toward this capital cost. 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. Problem 24-6 (IAA) Zephyr Company is provided a grạnt by a foreign governme for the purpose of acquiring land for a building site. grant is a zero-interest loan for 5 years evidenced by - promissory note. The loan was granted on January 1, 2020 for P8,000;000. The market rate of interest is 6%. The present value of 1 for five periods at 6% is .7473. Required: Prepare journal entries for 2020 and 2021.
Problem 24-5 (IFRS) At the beginning of current year, Apple Company purchased a plating machine for P5,400,000. The entity received a government grant of P400,000 toward this capital cost. 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. Problem 24-6 (IAA) Zephyr Company is provided a grạnt by a foreign governme for the purpose of acquiring land for a building site. grant is a zero-interest loan for 5 years evidenced by - promissory note. The loan was granted on January 1, 2020 for P8,000;000. The market rate of interest is 6%. The present value of 1 for five periods at 6% is .7473. Required: Prepare journal entries for 2020 and 2021.
Chapter20: Income Taxation Of Trusts And Estates
Section: Chapter Questions
Problem 25P
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PROBLEM 24-5(IFRS) AND PROBLEM 24-6 (IAA)
Transcribed Image Text:grant is accounted for as deferred income and deduction from
for the purpose of acquiring land for a building site. The
market rate of interest is 6%. The present value of 1 for five
The loan was granted on January 1, 2020 for P8,000;000. The
asset
At the beginning of current year, Apple Company purchased
a plating machine for P5,400,000. The entity received a
government grant of P400,000 toward this capital cost.
Problem 24-5 (IFRS)
The machine is to be depreciated on a 20% reducing balance
basis over 10 years. The estimated residual value is P200,000.
If
in
th
Prepare journal entries for the current year, assuming the
grant is accounted for as deferred income and deduction from
asset.
Required:
Th
life
On
Problem 24-6 (IAA)
Zephyr Company is provided a grant by a foreign governmen
years evidenced by a
gran
conc
Req
grant is a zero-interest loan for
promissory note.
Prepa
accou
1. De
2.
periods at 6% is .7473.
De
Required:
Prepare journal entries for 2020 and 2021.
684
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