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During 2020, Peach Company purchased machine for P7,0000,000 and received a government grant of P1,000,000 toward capital cost. The machine is to be depreciated on
- During 2020, Peach Company purchased machine for P7,0000,000 and received a government grant of P1,000,000 toward capital cost.
The machine is to be depreciated on a straight-line method basis over 5 years and estimated to have residual value of P500,000 at the end of the period.
Required:
Prepare journal entries using Deferred Approach and Deduction from Asset Approach.
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