Pure Copper Limited bought pollution control equipments costing ₹ 30 million. As per the scheme of the government, to promote use of pollution control devices, 40% of the cost of the equipment is given as a grant. The equipment is estimated to have a useful life of three years will nil residual value. The company follows straight line method of charging depreciation. 

1. How will the acquisition be initially recorded?

2. How will the equipment and grant appear in the first balance sheet after acquiring the equipment?

3. What will be the impact of government grant in the profit and loss account?