On January 1, 20x1, Entity A receives a financial aid from t govermment amounting to PIM as compensation for losse has incurred on a recent calamity. How much income tro govermment grant will Entity A recognize in 20x17 a. 1,000,000 b. 100,000 c. 53,334 d. 0
On January 1, 20x1, Entity A receives a financial aid from t govermment amounting to PIM as compensation for losse has incurred on a recent calamity. How much income tro govermment grant will Entity A recognize in 20x17 a. 1,000,000 b. 100,000 c. 53,334 d. 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 20x1, Entity A received a land with fair of P200,000 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 P1,000,000. The building has an estimated useful life of 10 years and zero residual value.
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Transcribed Image Text:0,000
On January 1, 20x1, Entity A receives a financial aid from Uk
govermment amounting to PIM as compensation for losses
has incurred on a recent calamity. How much income fro
govermment grant will Entity A recognize in 20x1?
a. 1,000,000
b. 100,000
c. 53,334
d. 0
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