On January 1, 2022, Annibelle Company received a grant of P9,000,000 from the foreign government in order to defray safety and environmental costs within the area where the entity is located. The safety and environmental costs are expected to be incurred over three years, respectively, P1,000,000, P2,000,000 and P3,000,000. What income from the government grant should be recognized in 2022? A. 9,000,000 B. 1,500,000 C. 3,000,000 D. 4,500,000
On January 1, 2022, Annibelle Company received a grant of P9,000,000 from the foreign government in order to defray safety and environmental costs within the area where the entity is located. The safety and environmental costs are expected to be incurred over three years, respectively, P1,000,000, P2,000,000 and P3,000,000. What income from the government grant should be recognized in 2022? A. 9,000,000 B. 1,500,000 C. 3,000,000 D. 4,500,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![On January 1, 2022, Annibelle Company received a grant of P9,000,000 from the foreign government in order to defray
safety and environmental costs within the area where the entity is located. The safety and environmental costs are
expected to be incurred over three years, respectively, P1,000,000, P2,000,000 and P3,000,000. What income from
the government grant should be recognized in 2022?
A. 9,000,000
В. 1,500,000
С. 3,000,000
D. 4,500,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2af8e892-e98a-4697-9002-51ffea988eb2%2F247fb5bc-f456-4867-8a75-31ffb8ddf8cc%2F413zsig_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On January 1, 2022, Annibelle Company received a grant of P9,000,000 from the foreign government in order to defray
safety and environmental costs within the area where the entity is located. The safety and environmental costs are
expected to be incurred over three years, respectively, P1,000,000, P2,000,000 and P3,000,000. What income from
the government grant should be recognized in 2022?
A. 9,000,000
В. 1,500,000
С. 3,000,000
D. 4,500,000
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