On January 1, 2019, Yolanda Company purchased a plating machine for P5,400,000. Yolanda received a government grant of P400,000 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?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On January 1, 2019, Yolanda Company purchased a plating machine for
P5,400,000. Yolanda received a government grant of P400,000 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
1 po
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?
Transcribed Image Text:On January 1, 2019, Yolanda Company purchased a plating machine for P5,400,000. Yolanda received a government grant of P400,000 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 1 po 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?
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