
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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NOTE: Please *recheck and provide *clear and complete step-by-step solutions in *scanned handwriting or typeset/computerized.

Transcribed Image Text:7. On January 1, 2020, Humility Company received a government grant of
P60,000,000 to compensate for costs to be incurred in planting trees over a
period of 5 years. The entity will incur such costs at 2,000,000 for 2020,
P4,000,000 for 2021, P6,000,000 for 2022, P8,000,000 for 2023, and
P10,000,000 for 2024.
What amount of income from the government grant is recognized for 2020?
a. 12,000,000
b. 8,000,000
C. 6,000,000
d. 4,000,000
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