On January 1, 20X2, ABC Company received a consolidated grant of P40,000,000. Three-fourths of the grant will be utilized to purchase a college building for students from underdeveloped or developing countries. The balance of the grant is for subsidizing the tuition costs of those students for 4 years from the date of the grant. The building was purchased in January 20X2 and is to be depreciated using the straight-line method over 10 years. How much income from the grant should be recognized for 20X2?
On January 1, 20X2, ABC Company received a consolidated grant of P40,000,000. Three-fourths of the grant will be utilized to purchase a college building for students from underdeveloped or developing countries. The balance of the grant is for subsidizing the tuition costs of those students for 4 years from the date of the grant. The building was purchased in January 20X2 and is to be depreciated using the straight-line method over 10 years. How much income from the grant should be recognized for 20X2?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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5. On January 1, 20X2, ABC Company received a consolidated grant of P40,000,000. Three-fourths of the grant will be utilized to purchase a college building for students from underdeveloped or developing countries. The balance of the grant is for subsidizing the tuition costs of those students for 4 years from the date of the grant. The building was purchased in January 20X2 and is to be
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