In the trial balance of Company A on the 31st December year 1 we can find the following accounts:

Machinery (213) : 500 euros (debit); Government Investments grants (130) 500 euros (credit).
We know that the grant was awarded on the 1st January Year 1 and that the machinery purchased has been depreciated 10% this year.
With the previous information, which option do you think is correct regarding the entries to be done about the investment grant on the 31st December Year 1?

Question

In the trial balance of Company A on the 31st December year 1 we can find the following accounts: 
 
 Machinery (213) : 500 euros (debit);  Government Investments grants (130) 500 euros (credit). 
 We know that the grant was awarded on the 1st January Year 1 and that the machinery purchased has been depreciated 10% this year.  
 With the previous information, which option do you think is correct regarding the entries to be done about the investment grant on the 31st December Year 1?

Answer

500 Government Investment Grants (130)  Investment grants taken to income (746)  500

Answer

50 Transfer of Government Investment grants (840)   Investment grants taken to income (746) 50

Answer

I do not know the answer

Answer

500 Machinery  (213)    Government investment grants  (130)   500

Answer

50 Government Investment Grants (130)   Accumulated Depreciation of tangible NCA (281)  50

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In the trial balance of Company A on the 31st December year 1 we can find the fo...

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