Question
Hansel manufacturers received a grant of P2 000,000 towards the purchase of a construction machine on 1 June 2021. It was agreed that the grant
Hansel manufacturers received a grant of P2 000,000 towards the purchase of a construction machine on 1 June 2021. It was agreed that the grant will be repaid if Hansel Ltd sells the asset in four years though the manufacturer does not wish to do so. The construction machine has a useful life of 5 years.
REQUIRED
Explain the consequences of the above scenario and calculate the deferred income liability balance as at 31 December 2021
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Horngrens Financial And Managerial Accounting The Managerial Chapters And The Financial Chapters Plus Pearson Mylab Accounting With Pearson Global Edition
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura
6th Global Edition
1292270756, 978-1292270753
