The following is an extract of Errsea's balances of property, plant and equipment and related government grants at 1 April 2006.

Details including purchases and disposals of plant and related government grants during the year are:
(i) Included in the above figures is an item of plant that was disposed of on 1 April 2006 for $12 000 which had cost $90 000 on 1 April 2003. The plant was being depreciated on a straight-line basis over four years assuming a residual value of $10 000. A government grant was received on its purchase and was being recognized in the income statement in equal amounts over four years. In accordance with the terms of the grant, Errsea repaid $3000 of the grant on the disposal of the related plant.
(ii) An item of plant was acquired on 1 July 2006 with the following costs:
$
Base cost.............................................................192 000
Modifications Specified by Errsea........................12 000
Transport and installation........................................6 000
The plant qualified for a government grant of 25% of the base cost of the plant, but it had not been received by 31 March 2007. The plant is to be depreciated on a straight-line basis over three years with a nil estimated residual value.
(iii) All other plant is depreciated by 15% per annum on cost.
(iv) $11 000 of the $30 000 non-current liability for government grants at 1 April 2006 should be reclassified as a current liability as at 31 March 2007.
(v) Depreciation is calculated on a time apportioned basis.
Required:
Prepare extracts of Errsea's income statement and balance sheet in respect of the property, plant and equipment and government grants for the year ended 31 March 2007. Note: disclosure notes are not required.

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Carrying amount $000 60 Accumulated depreciation Cost $000 240 Property, plant and equipment Non-current liabilities Government grants Current liabilities Government grants 180 30 10