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Question - Maker company acquired a rice milling machine to be used by farmers for P900,000 on January 1, 2020. The company received a government grant of P81,000 in respect of this asset. Company policy was to depreciate the asset over 4 years on a straight-line basis and to treat the grant as deferred income.
Required -
1. What should be the carrying amount of the machine as of December 31, 2021?
2. What the deferred income balance at December 31, 2021 of Maker Company?
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