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2. Man Limited (a farming business) receives a government grant of P20,000 to purchase a heavy planting machine on 1 July 2019. The cost of
2. Man Limited (a farming business) receives a government grant of P20,000 to purchase a heavy planting machine on 1 July 2019. The cost of the machine was P50,000 and with 5 years of economic use. The depreciation policy of the business is straight-line.
Show the recognition of the government grant in the Income Statement and Statement of Financial Position as at 31 December 2019, 2020 and 2021. (10 marks)
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