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Arturo Co receives a government grant representing 50% of the cost of a depreciating asset which costs $40,000

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Arturo Co receives a government grant representing 50% of the cost of a depreciating asset which costs $40,000. The residual value is nil. The useful life is four years.

 

Required:

 

How will the grant be recognized if Arturo Co depreciates the asset:

 

1. Over four years straight line
2. At 40% reducing balance?