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kindly solve this as soon as possible. . Question 2 (25 Points) On...

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Accounting

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kindly solve this as soon as possible.

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Question 2 (25 Points) On 01.01.20 Alpha Inc. purchases a license to produce a good from Beta Inc. at a price of 3,500,000 . The license expires after 5 years. Alpha Inc. uses straight-line method for amortization. The fair value of the license develops as follows: 31.12.20 31.12.21 31.12.22 31.12.23 3,000,000 | 1,860,000 1,000,000 800,000 a) Alpha Inc. uses the revaluation model. Display the correct accounting treatment (journal entries, positions and amounts in P&L and in balance sheet). b) Alpha Inc. purchases a new production machine to increase its production capacity. To partly finance the acquisition of the machine, Alpha Inc. received 400,000 from the local government as an interest free loan. This loan does not have to be repaid, if Alpha Inc. hires 5 new employees and does not fire them within the next 3 years. Briefly explain how this transaction is to be treated (no calculation of any book values etc. required)

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