Basem WLL successfully received a government grant of BD1,500,000 on 1 January 2020 allowing it to purchase an asset which cost BD1,500,000 on the same date. The asset has a ten-year useful life and is depreciated on a 20% reducing balance basis. Basem WLL policy is to account for a grant received as deferred income.

Which will be recognised as the amount of income in respect of the grant in the year to 31 December 2020?

BD300,000

BD150,000

BD1,500,000

BD500,000