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NEW QUESTION: 1
Manz-Fi Ltd is entitled to receive a government grant of $8m on the condition that it will set up a garment factory in an underdeveloped area. The building of the factory started on 1 January 2012 at a cost of $10m. It is expected to have a useful life of 50 years.
What are the amounts of current and non-current liability (to nearest $1,000) in respect of extracts from Manz-Fi Ltd's financial statements for the year ended 31 July 2012?
(Use the treatment of "Record grant separately as deferred income")
A. Current liability: $160,000; Non-current liability: $7,747,000
B. Current liability: $200,000; Non-current liability: $7,707,000
C. Current liability: $160,000; Non-current liability: $9,800,000
D. Current liability: $200,000; Non-current liability: $7,547,000
Answer: A
NEW QUESTION: 2
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Explanation:
NEW QUESTION: 3
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