On January 1, 20x1, Entity A received land with fair of ₱200,000 from the government conditioned on the construction of a building on the lot. Entity A started immediately the construction and it was completed on December 31, 20x1 for a total cost of ₱1,000,000. The building has an estimated useful life of 10 years and zero residual value. How much is the carrying amount of the building on December 31, 20x2 under the following presentations? Gross presentation Net presentation a. 1,000,000 800,000 b. 900,000 720,000 c. 800,000 640,000 d. 800,000 533,333
On January 1, 20x1, Entity A received land with fair of ₱200,000 from the government conditioned on the construction of a building on the lot. Entity A started immediately the construction and it was completed on December 31, 20x1 for a total cost of ₱1,000,000. The building has an estimated useful life of 10 years and zero residual value.
How much is the carrying amount of the building on December 31, 20x2 under the following presentations?
Gross presentation Net presentation
a. 1,000,000 800,000
b. 900,000 720,000
c. 800,000 640,000
d. 800,000 533,333
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