Waterway Limited was attracted to the Town of Mornington by the town's municipal industry commission. Mornington donated a plant site to Waterway, and the provincial government provided $171,000 toward the cost of the new manufacturing facility. The tota cost of plant construction came to $384,000, and it was ready for use in early October 2023 . Waterway expects the plant to have a useful life of 15 years before it becomes obsolete and is demolished. The company uses the straight-line method of depreciation for buildings and is required to include the plant in Class 6 (10\% rate) for tax purposes. (a) Your answer is correct. Prepare the entries that are required in 2023 to record the payment to the contractor for the building and the receipt of the provincial government assistance. Assume that the company treats the assistance as a reduction of the asset's cost. Also prepare any adjusting entries that are needed at the company's year ends, December 31, 2023 and 2024. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries. Round answers to 0 decimal places, e.g. 5,275.) (To record depreciation for 2023) 4. (To record depreciation for 2024 ) List of Accounts Attempts: 4 of 15 used Prepare the entries that are required in 2023 to record the payment to the contractor for the building and the receipt of the provincial government assistance. Assume that the company treats the government assistance as a deferred credit. Also prepare any adjusting entries that are needed at the company's year ends, December 31, 2023 and 2024. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries. Round answers to 0 decimal places, e.g. 5,275.) Cash 384000 (To record cash payments) 2. Cash 171000 Deferred Revenue - Government Grants (To record cash received) 3. Depreciation Expense 3. Depreciation Expense 6400 Accumulated Depreciation - Buildings (To record depreciation expense) Deferred Revenue - Government Grants 2850 Revenue - Government Grants (To record amortization of government assistance) 4. Depreciation Expense Accumulated Depreciation - Buildings (To record depreciation expense) Deferred Revenue - Government Grants 11400 Revenue - Government Grants (To record amortization of government assistance) If Waterway reports 2024 income of $99,000 before depreciation on the plant and government assistance, what income before tax will the company report assuming (a) above? Assuming (b) above? (Round answers to 0 decimal places, e.g. 5,275.) eTextbook and Media List of Accounts Attempts: 2 of 15 use d) What is the building's tax value at December 31,2024 ? UCC, Dec. 31, 2024 (tax value) \$ eTextbook and Media Waterway Limited was attracted to the Town of Mornington by the town's municipal industry commission. Mornington donated a plant site to Waterway, and the provincial government provided $171,000 toward the cost of the new manufacturing facility. The tota cost of plant construction came to $384,000, and it was ready for use in early October 2023 . Waterway expects the plant to have a useful life of 15 years before it becomes obsolete and is demolished. The company uses the straight-line method of depreciation for buildings and is required to include the plant in Class 6 (10\% rate) for tax purposes. (a) Your answer is correct. Prepare the entries that are required in 2023 to record the payment to the contractor for the building and the receipt of the provincial government assistance. Assume that the company treats the assistance as a reduction of the asset's cost. Also prepare any adjusting entries that are needed at the company's year ends, December 31, 2023 and 2024. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries. Round answers to 0 decimal places, e.g. 5,275.) (To record depreciation for 2023) 4. (To record depreciation for 2024 ) List of Accounts Attempts: 4 of 15 used Prepare the entries that are required in 2023 to record the payment to the contractor for the building and the receipt of the provincial government assistance. Assume that the company treats the government assistance as a deferred credit. Also prepare any adjusting entries that are needed at the company's year ends, December 31, 2023 and 2024. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries. Round answers to 0 decimal places, e.g. 5,275.) Cash 384000 (To record cash payments) 2. Cash 171000 Deferred Revenue - Government Grants (To record cash received) 3. Depreciation Expense 3. Depreciation Expense 6400 Accumulated Depreciation - Buildings (To record depreciation expense) Deferred Revenue - Government Grants 2850 Revenue - Government Grants (To record amortization of government assistance) 4. Depreciation Expense Accumulated Depreciation - Buildings (To record depreciation expense) Deferred Revenue - Government Grants 11400 Revenue - Government Grants (To record amortization of government assistance) If Waterway reports 2024 income of $99,000 before depreciation on the plant and government assistance, what income before tax will the company report assuming (a) above? Assuming (b) above? (Round answers to 0 decimal places, e.g. 5,275.) eTextbook and Media List of Accounts Attempts: 2 of 15 use d) What is the building's tax value at December 31,2024 ? UCC, Dec. 31, 2024 (tax value) \$ eTextbook and Media
