Tteokguk Foundation, a governmental unit, owned an idle parcel of real estate consisting of land and factory building. Tteokguk gave the title to this realty to Jangjorim Company as an incentive for a condition that Jangjorim to establish the business operations in the area. Jangjorim paid nothing to this realty which had a fair market value of P2,000,000 at the date of grant. How would Jangjorim record this non-monetary transaction? * O credit to unearned income from government grant for P2,000,000 O credit to retained earnings for P2,000,000 O memo entry only. O credit to donated capital for P2,000,000
Tteokguk Foundation, a governmental unit, owned an idle parcel of real estate consisting of land and factory building. Tteokguk gave the title to this realty to Jangjorim Company as an incentive for a condition that Jangjorim to establish the business operations in the area. Jangjorim paid nothing to this realty which had a fair market value of P2,000,000 at the date of grant. How would Jangjorim record this non-monetary transaction? * O credit to unearned income from government grant for P2,000,000 O credit to retained earnings for P2,000,000 O memo entry only. O credit to donated capital for P2,000,000
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Tteokguk Foundation, a governmental unit, owned an idle parcel of real estate consisting of
land and factory building. Tteokguk gave the title to this realty to Jangjorim Company as an
incentive for a condition that Jangjorim to establish the business operations in the area.
Jangjorim paid nothing to this realty which had a fair market value of P2,000,000 at the date of
grant. How would Jangjorim record this non-monetary transaction? *
O credit to unearned income from government grant for P2,000,000
O credit to retained earnings for P2,000,000
O memo entry only.
O credit to donated capital for P2,000,000
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