An entity receives a grant of P50,000,000 from the Japanese Government for the construction of a experiment and research facility with an estimated cost of 70,000,000, with useful life of 35 years. Using the deferred income approach, compute the balance of deferred income from government grant by the end of the fifth year from the date of grant. (Round off answer to the nearest peso)

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Contract Costing

Contract costing is about tracing particular costs related to a particular contract entered into with the customer. It is one of the forms of job order costing. It is useful in long-term contracts at the most. It is seen that substantial time is required for the completion of the contract which takes different accounting periods. Thus, it is very much helpful for recognizing the costs associated with it and accounting in their specific accounting periods.