2.  ABC Co. received a grant from the government of £200,000 to acquire £600,000 of delivery equipment onJanuary 2, 20X1. The delivery equipment has a useful life of 4 years. ABC Co. uses the straight-line methodof depreciation. The delivery equipment has a zero residual value.The government also agreed to provide aninterest-free loan of £400,000, with the loan payable at the end of two years. ABC Co.’s incrementalborrowing rate is . Instructions
【題組】(a) What is the   carrying amount of the delivery equipment  ,   the amount of depreciation expense  , and   theamount of grant revenue related to the equipment   at December 31, 20X1 or in 20X1 (1) if ABC Co.reports the grant for the equipment as a reduction of the asset. (2) if ABC Co. reports the grant for theequipment as deferred grant revenue.