An entity received a government grant under the following independent situations: Problem 24-1 (PAS 20) 1. An entity received a grant of P30,000,000 from the British government in order to defray safety and environmental costs within the area where the entity is located. The safety and environmental costs are expected to be incurred over four years, respectively, P2,000,000, P4,000,000, P6,000,000 and P8,000,000. 2. An entity received a grant of P40,000,000 from the American government for the construction of laboratory and research facility with an estimated cost of P50,000,000 and useful life of 20 years. 3. An entity is granted a large tract of land in Cordillera by the Philippine government. The fair value of the land is P50,000,000. The grant requires that the entity shall construct a factory and employ only personnel residing in the Cordillera region. ree- aldir antri The cost of the factory is P80,000,000 with useful life of 20 e bala years. e stu Australian government to compensate for massive losses incurred because of a recent earthquake. ebuilds epreci 1. An entity received a grant of P10,000,000 from the Prepare journal entries for the first year to record each ndependent government grant Required: buition

An entity received a government grant under the following independent situations: Problem 24-1 (PAS 20) 1. An entity received a grant of P30,000,000 from the British government in order to defray safety and environmental costs within the area where the entity is located. The safety and environmental costs are expected to be incurred over four years, respectively, P2,000,000, P4,000,000, P6,000,000 and P8,000,000. 2. An entity received a grant of P40,000,000 from the American government for the construction of laboratory and research facility with an estimated cost of P50,000,000 and useful life of 20 years. 3. An entity is granted a large tract of land in Cordillera by the Philippine government. The fair value of the land is P50,000,000. The grant requires that the entity shall construct a factory and employ only personnel residing in the Cordillera region. ree- aldir antri The cost of the factory is P80,000,000 with useful life of 20 e bala years. e stu Australian government to compensate for massive losses incurred because of a recent earthquake. ebuilds epreci 1. An entity received a grant of P10,000,000 from the Prepare journal entries for the first year to record each ndependent government grant Required: buition

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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