IAS 20 On January 2, 2017, Parasail Company received a consolidated grant of P12,000,000. Three-fourths of the grant Is to 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 the grant. The building was purchased in early January and is to be depreciated using the straight line method over 10 years. The tuition costs paid amounted to P600,000 during the current year. 9. What amount of the grant is recognized as income for the year ended December 31, 2017? a. 1,200,000 3,000,000 c. 1,650,000 d. 1,050,000 b.

IAS 20 On January 2, 2017, Parasail Company received a consolidated grant of P12,000,000. Three-fourths of the grant Is to 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 the grant. The building was purchased in early January and is to be depreciated using the straight line method over 10 years. The tuition costs paid amounted to P600,000 during the current year. 9. What amount of the grant is recognized as income for the year ended December 31, 2017? a. 1,200,000 3,000,000 c. 1,650,000 d. 1,050,000 b.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

sac.9
Green Pastures received a grant of P60 million to compensate it for costs incurred in planting Narra trees over a period of 5 years. Green Pastures will recur such costs in this manner: Year Costs 1 2M 2 4M 3 6M 4 8M 5 10M Total costs thus incurred will aggegate P30 M. Required: Based on the provisions of PAS 20, Government Grants, how should Green Pastures treat the “grant” in the books?
Determine the capitalized cost of a research laboratory which requires P 5 million for original construction; P 100,000 at the end of every year for the first 3 years and then P 120,000 thereafter, for operating expenses and P 500,000 every year for replacement of equipment. Money is worth 14%. O P 6,351,009 P 6,607,837 O P 6,451,239 O P 6,782,451
Question #5 Idaho Farm Services Company has received two proposals for a new General-Purpose Wheat Harvester. Information provided for each harvester is as follows: Master Cutter Master Cutter Model 440 Model 480 Capital investment $415,000 $595,000 Annual cash flows $105,000 $270,000 Estimated useful life 10 years 10 years Idaho Farm uses a discount rate of 9% to evaluate both projects. Note: Factor for the Present Value of an Ordinary Annuity 10 years @9% = 6.41766 Instructions (a) Calculate the net present value of both models. (b) Calculate the profitability index for each model. (c) Which project should Idaho Farm Services accept? (d) What might be some "qualitative" factors to consider?
On September 1, 2014, a university received a grant of $100,000 from Tajinder. The money is invested at 8% compounded quarterly. The grant is to be used to pay out semi-annual scholarships for 20 years. What is the size of each scholarship if the first one is awarded on September 1, 2016? Need well explained answer, please do not use excel.
One of your company's clients has proposed a contract offering an estimated $150,000 in net profits for the next six years; however, your company would be required to invest $585,000 today to acquire the needed resources for the project. Determine whether the project should be accepted if the cost of capital is a. 10% b. 13% c. 16%
Interest During Construction Dexter Construction Corporation is building a student condominium complex; it started construction on January 1, Year 1. Dexter borrowed $1 million specifically for the project by issuing a 10%, 5-year, $1 million note, which is payable on December 31 of Year 3. Dexter also had a 12%, 5-year, $3 million note payable and a 10%, 10-year, $1.8 million note payable outstanding all year. In Year 1, Dexter incurred costs as follows: January 1 $260,000 March 1 540,000 June 30 1,000,000 November 1 420,000 Calculate Dexter's capitalized interest on the student condominium complex for Year 1. Capitalized interest =
mni.9
ABC Corporation funded the construction of its new plant throughboth specific and general borrowing. Details are as follows: Date Amount Spent Jan. 1, 2021 4,800,000 Oct. 30, 2021 6,000,000 Borrowing Interest Rate Principal amt. Investment Income Specific 7% 5,000,000 100,000 General 10% 10,000,000 50,000 10. How much is the average carrying value of the equipmentduring the year? 11. How much is the capitalizable borrowing cost for the year? 12. How much is the interest expense to be reported in theincome statement for the year?
On January 1, 20x1, Lawrence Lenders loaned $9.6 million to Wilkins Food Products, Inc. to purchase a frozen food storage facility. Wilkins signed a three-year, 4% installment note to be paid in three equal payments at the end of each year. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: Prepare the following for Lawrence Lenders: 1. Prepare the journal entry for lending the funds on January 1, 20x1. 2. Prepare an amortization schedule for the three-year term of the installment note. 3. Prepare the journal entry for the first installment payment received on December 31, 20x1. 4. Prepare the journal entry for the third installment payment received on December 31, 20x3. Complete this question by entering your answers in the tabs below. Req 2 Saved Req 1 3 and 4 2021 Prepare an amortization schedule for the three-year term of the installment note. (Enter your answers in whole dollars.) Dec. 31 Cash…
The following information pertains to Yoyo Projects for the three months ended 31 May 2020:ActualBudgetedMarchRAprilRMayRRevenue (20% for cash and 80% on credit)360 000380 000400 000Purchases (10% for cash 90% on credit)240 000280 000320 000Salaries and wages paid40 00060 00060 000Cash expenses24 00028 00032 000Depreciation2 0002 0002 000Additional Information:a) It is expected that debtors will settle their accounts as follows:• 20 % in the month of invoice• 70% in the month after the month of invoice, and• 5% in the second month after the month of invoice• The remaining 5% is usually written off as bad debts.b) Trade creditors are paid in the month after purchase at a discount of 5%.c) 50% of the salaries and wages are weekly wages. Since wages are paid weekly, usually 10% of the wages are paid in the month following the month in which they were incurred.d) Expenses are paid as they arise.e) The favourable bank balance on 1 April 2020 was R 21 000.RequiredPrepare the Cash Budget of…
A 272.