What journal entry will you write the beginning

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Question - An entity purchased equipment on January 2, 20x0 at a cost of $800,000. During 20x0, the entity received a government grant of $200,000 towards the purchase of the equipment. The $200,000 was credited to income in 20x0. The equipment is being depreciated using the diminishing balance method at a rate of 25%. The residual value of the equipment is estimated to be $50,000 at the end of it's 6 year useful life. In 20x2, you notice the error made in 20x0. Ignoring taxes, what journal entry will you write the beginning of 20x2 to correct the error?

Reference no: EM132785664

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