1 January 2017, Mama Co. received a 30% grant towards the cost of a 'sustainable' machinery valued at $10 million. The asset has an expected life of five years and zero residual value. Bato Co. leased out tangible non-current assets as operating leases. At 1 January 2017, the carrying amount of such assets was $40 million while the remaining useful life was 10 years. These assets were leased out on operating leases that have recently expired. On 31 December 2017, the company is undecided to whether sell or lease the assets to customers under operating leases bot wants to recognise it as held for sale. The fair value less selling costs of the asset is $37 million and the value in use is estimated at $38 million. For each of the above situation: Identify the relevant MERS ii. Explain the accounting treatment iii. Prepare relevant journal entries (note: for the financial year-end is 31 December 2017)