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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education