On April $1,2022,$ ARGENTINA CORP. received a land from the government with a

condition that a factory building should be constructed on it$.$ On that date, the

land has a fair value of P$6,000,000.$ The construction of the factory building was

completed on June $30,2022$ with a total cost of P$16,000,000.$ Company policy is to

treat the grant as a reduction in the cost of the asset. The building is to be

depreciated using $150\%$ declining balance method over its useful life of $10$ years.

Under IAS$20$ Government grants and government assistance, what should be the

depreciation expense to be reported by ARGENTINA CORP. in respect of the machine for the year ended December $31,2022?$

Answer rating: 100% (QA)

The depreciation expense to be reported by ARGENTINA CORP in respect of the fac... View the full answer