In 2018,Waverly Corp.set up a new manufacturing facility in Nova Scotia.To encourage Waverly to set up its factory,the province provided equipment with a fair value of $250,000,and estimated residual value of $0,and an estimated useful life of 10 years using straight-line depreciation.What journal entry would be required in fiscal 2019,using the gross method?
A) A credit to donation revenue of $25,000.
B) A credit to other comprehensive income - donated assets of $25,000.
C) A credit to other income - government grant of $25,000.
D) A credit to depreciation expense for $25,000.
Correct Answer:
Verified
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