On January 1, 20x1, Entity A receives a financial aid from the government amounting to ₱1M as compensation for losses it has incurred on a recent calamity. How much income from government grant will Entity A recognize in 20x1? 1,000,000 3 53,334 100,000 4. 0

On January 1, 20x1, Entity A receives a financial aid from the government amounting to ₱1M as compensation for losses it has incurred on a recent calamity. How much income from government grant will Entity A recognize in 20x1? 1,000,000 3 53,334 100,000 4. 0

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter13: Tax Credits And Payment Procedures

Section: Chapter Questions

Problem 14CE

See similar textbooks

Related questions

Q: Bermuda Corporation reports the following results in Year 1 and Year 2: Year 1 Year 2…

A: Charitable contribution deduction allowable in case where contribution made in charitable…

Q: The amount that should report as expenditure in its general funds is a. RO 5 million b. RO 30…

A: The general fund is the fund that records all the general incomes and expenditures. It deals with…

Q: Example 2 Kaokodi Ltd received a grant of GHC60 million to compensate it for costs it incurred in…

A: NOTE : As per BARTLEBY guidelines, when multiple questions are given then first question is to be…

Q: On January 1, 2021, Robin Company received a grant of P1,500,000 frorm the government to subsidize…

A: The grant is the amount that is received from the government to fulfill a certain activity. It is a…

Q: A) I only B) II only C) Either I or II D) Neither I nor II 2

A: "Since you have posted multiple questions, we will provide the solution only to the first question…

Q: On January 1, 20x1, Entity A started the construction of a qualifying asset. The qualifying assetis…

A: Borrowing costs eligible for capitalization = Average expenditure * Capitalization rate = 9,500,000…

Q: 2. On January 1, 2021, Entity A received land with fair of 200,000 from the government conditioned…

A: a) The income from government gran tin 2021 and 2022 is 2021 - 200,000 2022 - 0 Note :- The…

Q: A non-profit organization received $80,000 as the entrance fee of a new member. If 10% of the fee…

A: The entrance fee received by non-profit organizations may be divided into two parts namely that need…

Q: On January 1, 2021, Fantastic Corporation received cash of P8,000,000 from a local government to be…

Q: For items 6-10.A donor transferred the following properties on a certain day: Cash Land Car…

A: we will only answer the first question , for the remianing question kindly resubmit the question…

Q: On January 1, 20x1, Entity A received land with fair of ₱200,000 from the government conditioned on…

A: Government Grant is the financial assistance provided by the government to an entity to buy an asset…

Q: 17. Ebasan Company received a grant of P60,000,000 to compensate it for costs it incurred in…

A: Solution Concept As per the provision of PAS 20 , The grant received to compensate for its cost…

Q: GIVEN data for a real property: Value Description Amount Market Value P1,000,000 Assessment level…

A: Here in this question, we are required to calculate local tax. In Philippines, real property tax is…

Q: Problem 5: Comparing the measurement focus and basis of accounting of governmental funds with the…

A: General Fund - This fund is used to record the core administrative and operational tasks of the…

Q: On January 1, 20x1, Entity A obtained a 12% ₱6,000,000 loan, specifically to finance the…

A: Interest on loan = Amount borrowed x rate of interest x no. of years = ₱6,000,000 x 12% x 1 =…

Q: C. The national government (NG) received a grant from the World Health Organization (WHO) amounting…

A: following is the journal entries

Q: Deductions from Gross Income Classify the items for deduction in the following scenarios. 3. A…

A: Introduction: An itemized deduction appears to be an expenditure that may be deducted from your…

Q: E13.1 Reporting Various Contributions The Castile County Rescue Mission receives the following…

A: Net assets are referred to as the amount which includes the deposit made by the depositors, the…

Q: 10. Assuming the donor is a non-resident alien with a reciprocity exemption, what is the amount of…

A: Answer: option b

Q: Green Pastures received a grant of P60 million to compensate it for costs incurred in planting Narra…

A: Government grant is the grant which is given to the company for some specific purpose. Given in the…

Q: not-for-profit organization receives $250 from a donor. The donor receives two tickets to a theater…

A: Contribution revenue for a non profit organisation includes donation, contribution etc. Contribution…

Q: 30. On January 1, 2021, Entity A receives a financial aid from the government amounting to PHP…

A: The recognition of income from government grant is made subject to fulfillment of following two…

Q: On January 1, 20x1, Entity A obtained a 12%, ₱6,000,000 loan, specifically to finance the…

A: A capitalisation of a cost is the process of recording it as an asset when the future benefits are…

Q: Problem 4. On January 1, 20x1, ABC CO received land with a fair of ₱200,000 from the government…

A: SOLUTION- GOVERNMENT GRANT IS THE FINANCIAL ASSISTANCE PROVIDED BY THE GOVERNMENT TO AN ENTITY TO…

Q: ow much should be grant income for the first year of grant for each of the following cases?

A: Government grants: The financial award provided by the Federal government to the eligible or…

Q: Exercise 2 (LO 4, 6) Contributions, statement of activities. Early in 2018, a not-for- profit…

A: GIVEN Early in 2018, a not-for profit organization received a $ 000, 000gift from a wealthy…

Q: RST Charities received equities securities valued at $100,000 as an unrestricted gift. At year end,…

A: Reasons for charity are varied but most people do charity to make a difference which means providing…

Q: Ministry of Tourism makes an appropriation of RO 450,000 for the development of tourist places. The…

A: The question is multiple choice question Required Choose the Correct Answer

Question

On January 1, 20x1, Entity A receives a financial aid from the government amounting to ₱1M as compensation for losses it has incurred on a recent calamity. How much income from government grant will Entity A recognize in 20x1?
1. 1,000,000 3 53,334
2. 100,000 4. 0

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

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.

Similar questions

30. On January 1, 2021, Entity A receives a financial aid from the government amounting to PHP 1,000,000 as compensation for losses if has incurred on recent calamity. How much income from government grant will Entity A recognize in 2021? а. 1,000,000 b. 100,000 с. 53.334 d. 0
Answer only
On January 1, 2021, Robin Cormpany received a grant of P1,500,000 frorm the government to subsidize tuition fees for a period of 5 years. On January 1, 2023, the entity violated certain conditions attached to the grant, and therefore had to repay such grant to the government. What amount should be recognized as loss resulting from the repayment of the grant in 2023?
Topic: Government Grant Question: How much should be grant income for the first year of grant foreach of the following cases? a. A 10-year, non-interest bearing, P20,000,000 term loan was received from the Philippine government. Without the loan from the government, the entity would need to pay 8% interest per year. b. P3,000,000 government grant was received to support the continued existence of the entity. The entity was heavily affected by the ashfall from a nearby volcano. The entity has a total legal life of 50 years and is on its 40th year.
17. Ebasan Company received a grant of P60,000,000 to compensate it for costs it incurred in planting trees over a period of 5 years. Ebasan will incur costs as follows: 2021 2022 P2,000,000 4,000,000 2023 6,000,000 2024 8,000,000 2025 10,000,000 Based on the provisions of PAS 20, how much should be recognized as income from government grant at the end of 2021? A. 60,000,000 B. 12,000,000 C. 2,000,000 D. 4,000,000
7. Robin Company
C. The national government (NG) received a grant from the World Health Organization (WHO) amounting to P50 million for the construction of hospitals. Under the terms of the grant, the construction project shall be completed within three (3) years from the receipt of the grant. Otherwise, the money shall be returned to the grantor. The money can only be used as stipulated, and the NG is required to include a note in the financial statement detailing how the money was spent. The Department of Health (DOH) will be the implementing entity. Required: Prepare the journal entries for the following: 1. Receipt of the grant. 2. Purchase of construction materials and payment of labor for the construction. 3. Receipt of the report from DOH for the completion of the construction of hospitals.
provide solution in good accounting form
HELP ME ANSWER THIS TYSM
For items 6-10. A donor transferred the following properties on a certain day: Philippines Abroad Cash P 400,000 РО Land 1,000,000 Car 3,000,000 8. Assuming the donor is a non-resident citizen, what is the amount of the donation inter-vivos? a. P1,000,000 b. P1,400,000 c. P4,000,000 d. P4,400,000
Cop
On January 1, 20x1, Entity A started the construction of a qualifying asset. The qualifying assetis financed through general borrowings. The average expenditures during the year amounted to₱9,500,000. The capitalization rate is 11%. The actual borrowing costs incurred during the periodwere ₱1,990,000. How much are the borrowing costs eligible for capitalization? a. 1,990,000 b. 1,045,000 c. 1,090,000 d. 990,000