(1) Oriole Enterprises purchased a new piece of equipment for its factory under a new government incentive program. The program was intended to encourage companies to invest in new, innovative technologies. The new piece of equipment purchased by Oriole qualified for a government grant of $25,800. The equipment itself cost $144,000, and had an estimated useful life of ten years.

Assuming that Oriole uses the cost reduction method, prepare the journal entries to record the purchase of the equipment and the receipt of the government grant.

(2) Metlock paid $49,500 to replace part of the factory floor. The floor had been capitalized as part of the factory building when it was purchased ten years previously, and was not considered a separate component. When purchased, the building had been assumed to have a 30-year useful life, and was being depreciated on a straight-line basis. At the time of the floor replacement, the building had been depreciated for 10 years. Metlock estimated that the original cost of the floor would have been 18% cheaper than the new replacement, due to inflation.

Prepare the journal entries to record these transactions, assuming Metlock follows IFRS