Rigg Owusu Enterprises Ltd bought a machine for GH₵ 150,000 on 1st January 2019. It depreciates the machine on cost over four years assuming a nil residual value. The company received a grant of GH₵30,000 from the municipal assembly to support the acquisition of the machines. Account for this grant under the netting off method.
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Rigg Owusu Enterprises Ltd bought a machine for GH₵ 150,000 on 1st January 2019. It
The company received a grant of GH₵30,000 from the municipal assembly to support the
acquisition of the machines.
Account for this grant under the netting off method.
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- VIOLET Company acquired an investment property on March 31, 2019 for ₱4,830,000. In addition, ₱210,000 was paid to the local authority as property transfer tax and ₱280,000 paid to professional advisers. The useful life of the property is 40 years. The fair market values of the property on December 31, 2019 and 2020 were ₱5,600,000 and ₱5,400,000 respectively. If the company is using the cost model what amount of investment property should be reported in the December 31, 2020 statement of financial position? A. ₱ 5,054,000 B. ₱ 5,320,000 C. ₱ 5,087,250 D. ₱ 5,400,0001. E. Adentwi Enterprises Ltd bought a machine for GH₵ 150,000 on 1st January 2019. It depreciates the machine on cost over four years assuming a nil residual value.The company received a grant of GH₵30,000 from the municipal assembly to support the acquisition of the machines. required :Account for this grant under the netting off method. 2. Polycarp Ltd adopts revaluation model for subsequent measurement of its intangible assets in accordance with IAS 38: Intangible assets. The policy of Polycarp is to revalue its intangible asset at the end of each year. An intangible asset with an estimated useful life of 9 years was acquired on 1 January 2018 for GH¢45,000. It was revalued to GH¢54,400 on 31 December 2018 and the revaluation surplus was correctly recognized on that date. As at 31 December 2019, the asset was revalued at GH¢32,000.Required:Discuss the accounting treatment required in 2018 and 2019 financial statements.VIOLET Company acquired an investment property on March 31, 2019 for ₱4,830,000. In addition, ₱210,000 was paid to the local authority as property transfer tax and ₱280,000 paid to professional advisers. The useful life of the property is 40 years. The fair market values of the property on December 31, 2019 and 2020 were ₱5,600,000 and ₱5,400,000 respectively. If the company is using the cost model what amount of investment property should be reported in the December 31, 2020 statement of financial position?
- VIOLET Company acquired an investment property on March 31, 2019 for ₱4,830,000. In addition, ₱210,000 was paid to the local authority as property transfer tax and ₱280,000 paid to professional advisers. The useful life of the property is 40 years. The fair market values of the property on December 31, 2019 and 2020 were ₱5,600,000 and ₱5,400,000 respectively. If the company is using the cost model what amount of investment property should be reported in the December 31, 2020 statement of financial position?* ₱ 5,087,250 ₱ 5,400,000 ₱ 5,054,000 ₱ 5,320,000Maroon Company acquired a rice milling machine to be used by farmers for P 900,000 on January 1, 2020. The company received a government grant of P81,000 in respect of this asset. It is the policy of the entity to depreciate the asset over 4 years on a straight Ine basis and to treat the grant as deferred income.QUESTION 1:What should be the carrying amount of the machine as of December 31, 2021?QUESTION 2:What is the deferred income balance at December 31, 2021?QUESTION 3:What is the realized income from government grants in 2022??Natalie Company purchased a machine for P6,600,000 on January 1, 2021 and received a government grant of P600,000 towards the capital cost. The policy is to treat the grant as reduction in the cost of asset. The machine is to be depreciated on a straight light basis over 10 years with a residual value of P500,000. On January 1, 2023, the grant became fully repayable because of noncompliance with conditions. What is the depreciation for 2021? What is the depreciation for 2023?
- Natalie Company purchased a machine for P6,600,000 on January 1, 2022 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 ten years with a residual value of P500,000. On January 1, 2024, the grant became fully repayable because of noncompliance with conditions. 1. What is the depreciation for 2022? A. 610,000 B. 600,000 C. 660,000 D. 550,000 2. What is the depreciation for 2024? A. 610,000 B. 600,000 C. 780,000 D. 730,000Keshia Company purchased a machine for P3,000,000 on January 1, 2022. The entity received a government grant of P500,000 in respect to this asset. The policy is to depreciate the asset over five years on a straight line basis and to treat the grant as deferred income. On January 1, 2024, the grant became fully repayable because of noncompliance with conditions. What is the loss on repayment of grant in 2024? A. 500,000 В. 300,000 С. 200,000 D. 100,0001. Patriotic Company purchased a machine for P6,000,000 on January 1, 2019, and received a government grant of P600,000 toward the asset cost. The accounting 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, 2021, the grant becomes fully repayable because of noncompliance with conditions. What is the depreciation for 2019? What is the depreciation for 2021? What is the carrying amount of the machinery at the end of 2021? What is the depreciation for 2022?
- PSD Bhd. (PSD) is a public listed company on Bursa Malaysia. On 1 July 2019, PSD Bhd. purchased a new machine for cash of RM2,000,000. The machine has an expected life of 10 years and a nil residual value. Depreciation is to be provided based on time apportioned basis. PSD received a 50% grant towards the cost of machine on the same date. PSD's accounting policy for capital-based grants is to treat them as deferred income and release them to income over the life of the asset to which they relate. On 31 December 2020, it is found that PSD can no longer fulfil the requirements of the government and hence PSD had to repay 50% of the grant on 31 December 2020. The accounting year end for PSD is 31 December each year. Required: Prepare the joumal entries to record the grant, depreciation and the repayment of the grant from 1 July 2019 until 31 December 2020.Industrial Development Corporation (IDC) granted Naseer Pty(Ltd) R20 000 on 01 January 2021 to assist in thepurchase of a manufacturing plant.The grant was conditional upon Naseer Pty(Ltd) purchasing the plant and manufacturing for a period of atleast two unbroken years. If the conditions of the grant were not met, the terms of the grant required that thegrant be repaid in full, immediately.The plant was purchased on 3rd January 2021 for R200 000 and was depreciated on the straight-line basisover its useful life of 4 years to a nil residual value.Other information:- Naseer ceased manufacturing on 31 March 2022 due to unforeseen circumstances.- The asset was not considered to be impaired and Naseer intended to resume manufacturing on thenext year. - Ignore the effect of tax and VAT.- Assume that Naseer Pty(Ltd) recognises grants as grant income.- The year end is 31 December Required:a) Show the journal entries relating to the grant for the year ended 31 December 2021 and up until…ABC Company acquired a rice milling machine to be used by farmers for P 900,000 on January 1, 2020. The company received a government grant of P 81,000 in respect of this asset. It is the policy of the entity to depreciate the asset over 4 years on a straight line basis and to treat the grant as deferred income. 1) What should be the carrying amount of the machine as of December 31, 2021? P 409,500 P 675,000 P 450,000 P 490,500 2) What is the deferred income balance at December 31, 2021? P 60,750 P 81,000 P 0 P 40,500 3) What is the realized income from government grants in 2022?? P 81,000 P 40,500 P 60,750 P 20,250