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Crane Ltd. received a $252000 grant from the federal government to help buy equipment as an incentive for them to establish manufacturing operations in Ottawa.
Crane Ltd. received a $252000 grant from the federal government to help buy equipment as an incentive for them to establish manufacturing operations in Ottawa. The company assumes equipment has a 10-year useful life and uses straight-line depreciation. If Crane uses the deferral method for such transactions, entries in year one would include a) credit to RevenueGovernment Grants $252000. b) debit to Deferred RevenueGovernment Grants $25200. c) credit to Accumulated Depreciation $25200. d) debit to Equipment $252000
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