On January 1, 2021, Fantastic Corporation received cash of P8,000,000 from a local government to be used in constructing a building. The construction was completed on December 31, 2021 for a total cost of P20,000,000. The building will be depreciated using the straight-line method for 20 years. Refer to Fantastic, calculate the value of income from government grant to be reported on December 31, 2021 using gross presentation. Select one: a. 400,000 b. 600,000 c. 1,000,000 d. 8,000,000

On January 1, 2021, Fantastic Corporation received cash of P8,000,000 from a local government to be used in constructing a building. The construction was completed on December 31, 2021 for a total cost of P20,000,000. The building will be depreciated using the straight-line method for 20 years. Refer to Fantastic, calculate the value of income from government grant to be reported on December 31, 2021 using gross presentation. Select one: a. 400,000 b. 600,000 c. 1,000,000 d. 8,000,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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