An entity purchased a machine for P5,000,000 in January 1,2020. The entity received a government grant of P1,000,000 in respect of this asset. The policy is to depreciate the asset over 5 years on straight line basis and to treat the grant as deferred income. On January 1, 2022 the grant became fully repayable because of noncompliance with conditions.

What is the loss on repayment of grant in 2022?

What is the depreciation for 2023?

my answers is 400,000 and 1,600,000 respectively am I right? and if wrong can you please explain why Thank you so much!