On January 1, 2021, Bongbong Company received a consollidated grant of P 12,000,000. three-fourths of the grant will will be utilized to purchase a college building for students from underdeveloped countries. The balance of the grant is for subsidizing the tuition cost of those students for four years from date of grant. The building was purchased in January 2021 and is to be depreciatedusing the straight-line method over 10 years. the tuition costs paid in 2021 amounted to P 600,000. How much income from government grant
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On January 1, 2021, Bongbong Company received a consollidated grant of P 12,000,000. three-fourths of the grant will will be utilized to purchase a college building for students from underdeveloped countries.
The balance of the grant is for subsidizing the tuition cost of those students for four years from date of grant.
The building was purchased in January 2021 and is to be depreciatedusing the straight-line method over 10 years. the tuition costs paid in 2021 amounted to P 600,000. How much income from government grant should be recognized for 2021?
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- On Jan. 1, 2021, Microsoft Company received a consolidated grant of P12,000,000. Three-fourths of the grant will be utilized to purchase a college building for students from underdeveloped or undeveloped countries. The balance of the grant is for subsidizing the tuition costs of those students for five years from the date of grant. The building was purchased in Jan. 1, 2021 and is to be depreciated using straight-line method over 10 years. The tuition costs paid in 2021 amounted to P600,000. How much income from government grant should be recognized for 2021? a. P 1,500,000b. P 3,000,000c. P 1,900,000d. P 1,650,000At the beginning of current year, Exuberant Company received a consolidated grant of P12,000,000. Three-fourths of the grant will be utilized to purchase a college building for students from underdeveloped or developing countries. The balance of the grant is for subsidizing the tuition costs of those students for four years from the date of grant. The building was purchased in early part of January and is to de depreciated using straight line over 10 years. The tuition costs paid in the current year amounted to 600,000. Required: Prepare journal entries for the current year.On January 1, 2019, Munich Co. received a grant of P10,000,000 from the government of USA for the construction of a building that will be used as a laboratory and research facility with an estimated cost of P15,000,000 and useful life of 10 years. The facility was completed on January 1, 2020. How much is the balance of deferred income from government grant on December 31, 2020 under the gross method (deferred income approach)?
- 5. On January 1, 20X2, ABC Company received a consolidated grant of P40,000,000. Three-fourths of the grant will be utilized to purchase a college building for students from underdeveloped or developing countries. The balance of the grant is for subsidizing the tuition costs of those students for 4 years from the date of the grant. The building was purchased in January 20X2 and is to be depreciated using the straight-line method over 10 years. How much income from the grant should be recognized for 20X2?on july 2018, neha received a $2m grant towards a new plant which will last 5 years. the grant must be repaid if neha sells the asset within 4 years. neha uses the deferred income method in relation to capital grants. what amoynt will be shown in the non current liabilities as at 31 december 2018On January 1, 2020, Optimistic Company was granted by a local government authority 5,000 hectares of land located near the slums outside the city limits. The condition attached to this grant was that the entity shall clean up this land and lay roads by employing laborers from the village where the land is located. The government has fixed the minimum wage payable to the workers. The entire operation will take 3 years and is estimated to cost P10,000,000. This amount will be spent P2,000,000 for 2020, P2,000,000 for 2021 and P6,000,000 for 2022. The fair value of this land is P12,000,000. Prepare the journal entry for 2020 in connection with this grant
- Magna Corporation is provided a grant by a foreigner government for the purpose of acquiring land for a building site. The grant is a zero-interest loan for 5 years evidenced by a promissory note. The loan was granted on January 1, 2020 for 8,000,000. The market rate of interest is 6%. The present value of 1 for 5 periods at 6% is 0.7473. Assume that interest expense and grant income are not offset against each other, Determine the amount of interest reported in 2022 ,amount of grant income realized in 2023 and amount of deferred grant income as of December 31, 2024.As of Jan. 1, 2020, ABC Corporation is constructing a new facility located in a community that has little livelihood sources. The entity received the land from the government on the condition that it hires 90% of its workers from the community throughout a 5-year period. The land is valued at P10,000,000. The construction of the building was partially financed by the entity and also the government. Information regarding the facility construction, government grant and funding sources can be seen in the attached image. By the end of 2020, construction is substantially completed. Date Amount Spent Jan. 1,2020 P 4,000,000 March 31,2020 5,000,000 June 30, 2020 8,000,000 Borrowing Interest Rate Principal Amount Specific Borrowing-Government 8% P 2,000,000 Genaral Borrowing A 9% 12,000,000 Genral Borrowing B 10% 4,000,000 All borrowings were outstanding throughout the year. Interest payments are due every Jan.1 1. How much is the capitalizable borrowing cost?…On January 1, 2021, Annibelle Company received a grant of P9,000,000 from the foreign government in order to defray safety and environmental costs within the area where the entity is located. The safety and environmental costs are expected to be incurred over three years, respectively, P1,000,000, P2,000,000 and P3,000,000. What income from the government grant should be recognized in 2021?
- Magna Corporation is provided a grant by a foreigner government for the purpose of acquiring land for a building site. The grant is a zero-interest loan for 5 years evidenced by a promissory note. The loan was granted on January 1, 2020 for 8,000,000. The market rate of interest is 6%. The present value of 1 for 5 periods at 6% is 0.7473. Assume that interest expense and grant income are not offset against each other, determine:1. Amount of interest reported in 20222. Amount of grant income realized in 20233. Amount of deferred grant income as of December 31, 2024On January 1, 2014, Valiant Company received a Government grant of P60,000,000 to compensate for the cost to be incurred in planting trees over a period of 5 years. Valiant Company will incur such cost at P2,000,000 for 2014, P4,000,000 for 2015, P6,000,000 for 2016, P8,000,000 for 2017, and P10,000,000 for 2018. What amount of income from the government grant is recognized for 2015?A company receives a government grant of $500,000 on 1 April 20X7 to facilitate purchase on the same day of an asset which costs $750,000. The asset has a five year useful life and is depreciated on a 30% reducing balance basis. Company policy is to account for all grants received as deferred income. What amount of income will be recognised in respect of the grant in the year to 31 March 20X9?