On 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?

Q: Using the Deferred Grant Revenue Approach for Accounting for the Grant the Net Book Value of the…

A: This question is related to the government grant so before moving into the question first we know…

Q: Abwenzi limited opens a new factory in Kawambwa and receives a government grant of k20,000 in…

A: Capital Approach:Under the Capital Approach, the government grant is treated as a deduction from the…

Q: Cullumber Ltd. received a $275000 grant from the federal government to help buy equipment as an…

A: There are two types of grants on can receive from the governmentMonetary grant andNon monetary…

Q: Required information [The following information applies to the questions displayed below.] In 2024,…

A: In construction contracts, the revenue is recognized over the period. So profit is recognized on the…

Q: In 2016 Sanford LTD. received a government grant of $100,000 to be used for the purchase of a…

A: Accounting treatment for government grants received.

Q: On January 1, 2021, Robin Company received a grant of P1,500,000 frorm the government to subsidize…

A: The grant is the amount that is received from the government to fulfill a certain activity. It is a…

Q: A government decided to make a 25-year loan on $2,500,000 at 10% interest to a "Toll Road…

A: Capitalization is the process through which accumulated interest is added to the loan's main sum.…

Q: On May 10, 2019, GUAVA Company received a grant of ₱8,000,000 from the British Government for the…

A: Solution: The whole amount of 10000000 because when on May 10, 2019, the amount 8000000 was a…

Q: The Ministry of Education is providing a capital grant to a school division in September 2020 of $30…

A: The objective of the question is to understand the financial impact of a capital grant on the School…

Q: 5. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three…

A: The percentage of completion methods is used to recognize the revenue over a period of time based on…

Q: The state government established a capital project fund in 2019 to build new highways. The fund is…

A: As you have posted multiple independent questions, we are answering the first question. Kindly…

Q: The general fund contracts with a construction firm to build an Afghan and Iraqi war memorial based…

A: The correct option is c.

Q: Required information [The following information applies to the questions displayed below.] In 2024,…

A: As the construction project moves forward, income is recorded using the percentage of completion…

Q: On Jan. 1, 2021, Microsoft Company received a consolidated grant of P12,000,000. Three-fourths of…

A: Grants means the amount received without any sale of product or providing any services. Government…

Q: 4. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three…

A: Solution: % of completion = Cost incurred to Date / Total Estimated costs Gross profit for the year…

Q: Nizwa township general fund acquired vehicles for the police department at the beginning of January…

A: Calculation of depreciation using SLM Straight-Line Depreciation Formula · Depreciation in Any…

Q: At the beginning of the current year, Peace Company purchased a machine for P 7,000,000 and received…

A: Journal entries are used to record the accounting transactions in chronological order under double…

Q: n July 1, 2004, the national government granted a parcel of land located in Baliuag, Bulacan to…

A: Accounting for government grants has two approaches, the first is the capital approach and the…

Q: 17. Ebasan Company received a grant of P60,000,000 to compensate it for costs it incurred in…

A: Solution Concept As per the provision of PAS 20 , The grant received to compensate for its cost…

Q: Surgimed Ghana Ltd. received a government grant of GH¢300,000 for acquiring plant and machinery…

A: Every company will prepare the accounting statements based on the transactions, and nature of the…

Q: Cake Corporation (CC), at the start of its fiscal year, received a Php21,001,400 subsidy from Ph…

A: As per the PAS 20 accounting standard of  Accounting for Government grant, a grant should be…

Q: During 2021, Ming's Book Store paid $486,000 for land and built a store in Naperville, Illinois.…

A: Journal entry:Journal is the book of original entries whereby all the financial transactions are…

Q: 3. On May 10, 2019, GUAVA Company received a grant of ₱8,000,000 from the British Government for the…

A: On 10.05.2019, GUAVA company received a grant from British government = P8000000 This grant is…

Q: On 1 April 2016, Gidimadjor Ltd received a government grant of GH¢8 million towards the purchase of…

A: Here, the grant is recognized as it is fulfilling the two stated conditions; The entity has…

Q: A government decided to make a 25-year loan on $2,000,000 to a "Toll Road Authority". The first 4…

A: A loan is a type of financial agreement whereby a lender gives a borrower a certain amount of money,…

Q: On January 2021, AAA Company paid the national government a fee in the amount of P129,000,000 for an…

A: Depletion method is applied for assets such as mines, oil industries where exploration of natural…

Q: A road is constructed at the capital cost of $10 million.  At the end of Year 10, major improvements…

A: Annualized Cost refers to equivalent cost that is incurred on project on annual basis. It is…

Q: In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa…

A: The revenue and profit or loss can be estimated for contract on the basis of the percentage of the…

Q: In 2020, Murphy Manufacturing Inc. acquired and placed in service a piece of machinery to…

A: Section 179 is related to the property deduction which normally is depreciation. Deduction section…

Q: The NCR Company purchased a varnishing machine for P150,000 on January 1, 2017. The company…

A: The NCR Company purchased a varnishing machine for P150,000 on January 1, 2017. The company received…

Q: Agency XYZ received from DBM allotment for capital outlay and NCA amounting to P15 million and P10…

A: The funds are allocated to Agency XYZ by DBM allotment for the expenditures incurred during the…

Q: In 2024, the Westgate Construction Company entered into a contract to construct a road for Santa…

A: Revenue Recognition means the recording of revenues of an entity in its books. It is an accrual…

Q: 1. How much is the annual deposit to the fund? 2. How much is the fund balance as of December 31,…

A: Balance at the end which is required at the end of the specified period, the investor or company…

Q: Using the Deferred Grant Revenue Approach for Accounting for the Grant the Net Book Value of the…

A: The depreciation would be calculated using straight-line method. The straight line method would be…

Property Insurance

Property insurance protects property from unforeseeable loss or damage and covers property owners' liability. Property insurance provides financial compensation to the property owner or renter in the event of damage or theft, as well as to someone other than the owner or renter if that person is injured on the property. Property insurance covers all risks of damage caused by theft, fire, flood, cyclones, lighting, and natural calamities, among other things. The primary goal of property insurance is to require the property owner to cover the loss. A monthly premium is paid to the insurance company, and in exchange, the insurance company pays for damage based on the agreement stated in the policy. Property insurance protects assets such as a vehicle, auto, car, rental home, house, and valuable property.