21) On January 1. 2021, Nola Company received a grant of P50 million from a foreign government for the construction of a laboratory and research facility with an estimated cost of P60 million and useful life of 25 years. The facility was completed in early 2022. Company policy is to treat the grant as a deduction from the cost of the asset. What should be the depreciation expense in respect of this facility for the year ended December 31, 2022, assuming the depreciation is calculated on a straight line basis? A. Nil B. 2,400,000 C. 2.000,000 D. 400,000

21) On January 1. 2021, Nola Company received a grant of P50 million from a foreign government for the construction of a laboratory and research facility with an estimated cost of P60 million and useful life of 25 years. The facility was completed in early 2022. Company policy is to treat the grant as a deduction from the cost of the asset. What should be the depreciation expense in respect of this facility for the year ended December 31, 2022, assuming the depreciation is calculated on a straight line basis? A. Nil B. 2,400,000 C. 2.000,000 D. 400,000

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter7: Deductions And Losses: Certain Business Expenses And Losses

Section: Chapter Questions

Problem 26CE

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