On Jan. 1, 2021, Microsoft Company received a consolidated grant of P12,000,000. Three-fourths of the grant will be utilized to purchase a college building for students from underdeveloped or undeveloped countries. The balance of the grant is for subsidizing the tuition costs of those students for five years from the date of grant. The building was purchased in Jan. 1, 2021 and is to be depreciated using straight-line method over 10 years. The tuition costs paid in 2021 amounted to P600,000. How much income from government grant should be recognized for 2021? a. P 1,500,000 b. P 3,000,000 c. P 1,900,000 d. P 1,650,000
On Jan. 1, 2021, Microsoft Company received a consolidated grant of P12,000,000. Three-fourths of the grant will be utilized to purchase a college building for students from underdeveloped or undeveloped countries. The balance of the grant is for subsidizing the tuition costs of those students for five years from the date of grant. The building was purchased in Jan. 1, 2021 and is to be depreciated using straight-line method over 10 years. The tuition costs paid in 2021 amounted to P600,000. How much income from government grant should be recognized for 2021? a. P 1,500,000 b. P 3,000,000 c. P 1,900,000 d. P 1,650,000
Chapter3: Income Sources
Section: Chapter Questions
Problem 43P
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On Jan. 1, 2021, Microsoft Company received a consolidated grant of P12,000,000. Three-fourths of the grant will be utilized to purchase a college building for students from underdeveloped or undeveloped countries. The balance of the grant is for subsidizing the tuition costs of those students for five years from the date of grant. The building was purchased in Jan. 1, 2021 and is to be
a. P 1,500,000
b. P 3,000,000
c. P 1,900,000
d. P 1,650,000
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