On July 1, 20x1, a flood damaged one of ABC’s buildings. The building has a carrying amount of 24,000,000 before the flood. Because of the damages, the building is now assessed to have a recoverable amount of only 9,000,000 and a reduced remaining useful life of 4 years. To aid in the loss, the government granted ABC Co. 200,000 cash. How much is the income from government grant in 20x1?

On July 1, 20x1, a flood damaged one of ABC’s buildings. The building has a carrying amount of 24,000,000 before the flood. Because of the damages, the building is now assessed to have a recoverable amount of only 9,000,000 and a reduced remaining useful life of 4 years. To aid in the loss, the government granted ABC Co. 200,000 cash. How much is the income from government grant in 20x1?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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