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Arturo Co receives a government grant representing 50% of the cost of a depreciating asset which costs $40,000. Required: How will the grant be recognized

Arturo Co receives a government grant representing 50% of the cost of a depreciating asset which costs $40,000. Required: How will the grant be recognized if Arturo Co depreciates the asset: (a) Over four years straight line; or (b) At 40% reducing balance? The residual value is nil. The useful life is four years.

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