This topic is about government grants. Choose the letter of correct answer. On Sept. 1, 2021, Entity A, a private university, receives P 1,000,000 cash as government grant conditioned on acquisition of computers to be used in Entity's A I.T. Department. Entity A acquires the computer on Nov. 1, 2021 at which date the computers are available for their intended use. Entity A recognize depreciation on a monthly basis. When should Entity A starts recognizing income from the government grant? a. September 1, 2021 b. November 1, 2021 c. November 30, 2021 d. December 31, 2021
This topic is about government grants. Choose the letter of correct answer. On Sept. 1, 2021, Entity A, a private university, receives P 1,000,000 cash as government grant conditioned on acquisition of computers to be used in Entity's A I.T. Department. Entity A acquires the computer on Nov. 1, 2021 at which date the computers are available for their intended use. Entity A recognize depreciation on a monthly basis. When should Entity A starts recognizing income from the government grant? a. September 1, 2021 b. November 1, 2021 c. November 30, 2021 d. December 31, 2021
Chapter20: Corporations And Parterships
Section: Chapter Questions
Problem 41P
Related questions
Question
This topic is about government grants. Choose the letter of correct answer.
On Sept. 1, 2021, Entity A, a private university, receives P 1,000,000 cash as government grant conditioned on acquisition of computers to be used in Entity's A I.T. Department. Entity A acquires the computer on Nov. 1, 2021 at which date the computers are available for their intended use. Entity A recognize
a. September 1, 2021
b. November 1, 2021
c. November 30, 2021
d. December 31, 2021
Entity A received land with fair value of P 200,000 from the government conditioned with the construction of a building on the lot. Entity A started immediately the construction and it was completed on Dec. 31, 2021 for a total cost of P 1,000,000. The building has an estimated useful life of 10 years with no residual value. How much is income from the government grant in 2021 and 2022?
a. P 0 and P 200,000, respectively
b. P 0 and P 20,000, respectively
c. P 200,000 and P 0, respectively
d. P 20,000 and P 20,000, respectively
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you