__________1. Loss on repayment of government grant on January 1, 2023 if the company accounts for the government grant as deferred income __________2. Depreciation expense for the year ended December 31, 2023, if the company accounts for the government as deduction from the cost of the asset
On January 1, 2021, ALI Inc. received P2,000,000 from national government on the condition that the company will construct an environmentally-friendly building with a cost of P13,000,000 and useful life of 10 years and residual value of P1,000,000. On January 1, 2023, the government grant became repayable as a result of ALI Inc.’s failure to comply with the environmentally-friendly specification requirement of the government grant condition.
__________1. Loss on repayment of government grant on January 1, 2023 if the company accounts for the government grant as
deferred income
__________2.
from the cost of the asset
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