On July 1, 20x1, a flood damaged one of ABC’s buildings. The building has a carrying amount of 2,400,000 before the flood. Because of the damages, the building is now assessed to have a recoverable amount of only 9,000,000 and a reduced remaining useful life of 4 years. To aid in the loss, the government granted ABC Co. 200,000 cash. How much is the income from government grant in 20x1?

On July 1, 20x1, a flood damaged one of ABC’s buildings. The building has a carrying amount of 2,400,000 before the flood. Because of the damages, the building is now assessed to have a recoverable amount of only 9,000,000 and a reduced remaining useful life of 4 years. To aid in the loss, the government granted ABC Co. 200,000 cash. How much is the income from government grant in 20x1?

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

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter12: Nonrecognition Transactions

Section: Chapter Questions

Problem 35P

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