CERTYNEX IFRS ACADEMY

Chevalier receives a grant of EUR 600,000 for a machine costing EUR 2,400,000, put into service on 1 October of year 1. Useful life: 8 years, straight-line depreciation pro rata temporis (case conventions); the grant is presented as deferred income. Which situation applies at 31 December of year 1?

Release of EUR 75,000 and remaining deferred income of EUR 525,000.

Release of EUR 18,750 and remaining deferred income of EUR 600,000.

Release of EUR 18,750 and remaining deferred income of EUR 581,250.

Release of EUR 56,250 and remaining deferred income of EUR 543,750.