Grant 5

5. Pikwe QT acquires on 1 January 2020 fixed asset for P4 mil. This asset will be depreciated over 5 years on a straight-line basis. Because the company is in a special economic zone, it qualifies for government assistance related to this asset for an amount of P3mil. REQUIRED: under two methods (a) Prepare necessary accounts in the 2020 (b) Show the extracts of Income statement and Statement of Financial position over the useful life of the asset