A company receives a government grant of $600,000 on 1 April 2007 to facilitate purchase on the same day of an asset which costs $900,000. The asset has a five year useful life and is depreciated on a 40% reducing balance basis. Company policy is to account for all grants received as deferred income. Required: 1. What amount of income will be recognized in respect of the grant in the year to 31 March 2010? 2. Refer to original data. What amount of income will be recognized in respect of the grant in the year to 31 March 2010 if the company accounted for the grant on a straight-line basis with a useful life of 4 years instead of a 40% reducing balance basis? 3. Refer to original data. What amount of depreciation will be recognized in respect of the asset in the year to 31 March 2010 if the company accounted for the grant by deducting the grant in arriving at the carrying amount of the asset instead of accounting for the grants received as deferred income?