Question: WHAT IS THE CARRYING AMOUNT OF THE MACHINE ON DECEMBER 31, 2020?

Note: Please the proper solution in a good accounting form. Thank you.

On Januaryr 1, 2019. Yolanda Company purchased a plating machine for P5,400,000. Yolanda received a government grant of P4D0.000 toward this capital cost. The machine is to be depreciated using straight line method with a five year life and no salvage value- The accounting policy is to treat the'government grant as a reduction in the cost of the asset. What is the carrying amount of the machine on December 31. 2020? Your answer 1 point