4) X Co purchase an asset on 1st of January 20x7 at the cost of $90,000. X received a grant in relation to the cost of this asset of $15,000 it has decided to write off the grant income against the cost of the non current asset. The asset has a useful economic life of nine years.
What is the carrying amount of the asset as at 31st December 20x7?
A) $90,000
B) $80,000
C) $67,500
D) $66,667
Is my result correct?
90000/9=10000
15000/9=1667
90000-10000-15000+1667= 66667 (D)
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grant question
Your answer is correct b also you can calculate like this
Asset cost. 90000
Less : govt grant. (15000)
Asset cost. 75000
Useful life. 9 year
Depreciation for the year = 75000/9 = 8333
Carrying value at the end of year = 75000-8333 = 66667
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