1.On 1 January 20X8, Derek Co received a 60,000 government grant relating to equipment which cost 180,000 with a expected useful life of six years. If government grant was treated as the deferred incomewhich extracts from the statement of financial position are required to reflect the correct accounting treatment of the government grant and the equipment in the financial statement of Derek Co for the year ended 31 December 20X8?

A.Property, plant and equipment180,000

Accumulated Depreciation (30,000)

Deferred Government Grant50,000

B.Property, plant and equipment120,000

Accumulated Depreciation (20,000)

C.Property, plant and equipment180,000

Accumulated depreciation(20,000)

D.Property, plant and equipment120,000

Accumulated depreciation(30,000)