Due to the current climate issue, the government of Botswana has just declared that it would provide farmers with financial aid to acquire ploughing machinery. However, there are requirements for selecting the eligible farmers. Farmers from Molemi are contemplating applying for the grant. However, they have already set aside monies for the machine's acquisition. The overall cost of the machine is P1,200,370. Molemi Group has P900,000 in the bank. The useful life of the machine is estimated to be 10 years and the policy is depreciated using diminishing balance at 10%.

1. If Molemi qualifies, how will they recognize the grant in their books over the 2 years of its useful life? (10 marks)