On January 1, 20x1, ABC Co. received 2,000,000 grant from the government to aid in the construction of a new building. The construction of the building was finished on March 31, 20x2 for a total cost of 6,000,000. The building is estimated to have a useful life of 30 years and a residual value of 1,000,000. If ABC Co. uses the net presentation, how much is the depreciation expense in 20x1?

On January 1, 20x1, ABC Co. received 2,000,000 grant from the government to aid in the construction of a new building. The construction of the building was finished on March 31, 20x2 for a total cost of 6,000,000. The building is estimated to have a useful life of 30 years and a residual value of 1,000,000. If ABC Co. uses the net presentation, how much is the depreciation expense in 20x1?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter3: Income Sources

Section: Chapter Questions

Problem 88P

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