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3. On May 10, 2019, GUAVA Company received a grant of P8,000,000 from the British Government for the construction of a laboratory and research facility with an estimated cost of P10,000,000 and a useful life of 5 years. The facility was completed in early 2020. How much should GUAVA Company include in its 2020 income statement as income from the government? * Your answer

3. On May 10, 2019, GUAVA Company received a grant of P8,000,000 from the British Government for the construction of a laboratory and research facility with an estimated cost of P10,000,000 and a useful life of 5 years. The facility was completed in early 2020. How much should GUAVA Company include in its 2020 income statement as income from the government? * Your answer

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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3. On May 10, 2019, GUAVA Company received a grant of P8,000,000 from the British Government for the construction of a laboratory and research facility with an estimated cost of P10,000,000 and a useful life of 5 years. The facility was completed in early 2020. How much should GUAVA Company include in its 2020 income statement as income from the government? * Your answer 4. MANGO Company acquired 4,000 shares of KIWI Corporation ordinary shares on April 2, 2020 at a cost of P440,000o to be held for trading. On October 7, 2020, KIWI distributed a 10% ordinary share dividend when the market price of the shares was P125 per share. On December 15, 2020, MANGO sold 400 shares of its KIWI shares for P64,000. For the year ended, December 31, 2020, how much should MANGO report as gain or loss on sale of investment? (If loss, put a negative sign before the numerical answer) * Your answer
Transcribed Image Text:3. On May 10, 2019, GUAVA Company received a grant of P8,000,000 from the British Government for the construction of a laboratory and research facility with an estimated cost of P10,000,000 and a useful life of 5 years. The facility was completed in early 2020. How much should GUAVA Company include in its 2020 income statement as income from the government? * Your answer 4. MANGO Company acquired 4,000 shares of KIWI Corporation ordinary shares on April 2, 2020 at a cost of P440,000o to be held for trading. On October 7, 2020, KIWI distributed a 10% ordinary share dividend when the market price of the shares was P125 per share. On December 15, 2020, MANGO sold 400 shares of its KIWI shares for P64,000. For the year ended, December 31, 2020, how much should MANGO report as gain or loss on sale of investment? (If loss, put a negative sign before the numerical answer) * Your answer
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