Choose the letter of the correct answer At the beginning of the current year, an entity purchased an equipment for P 4,000,000 and received government grant of P 500,00 with respect to this asset. The equipment is depreciated on a straight-line basis over 5 years. The residual value of the equipment is P 200,000. The entity use deduction from asset approach. What would be the journal entry to recognize the grant income for the year? a. Debit to Deferred grant income P 660,000 and Credit to Grant income P 660,000 b. Debit to Deferred grant income P 760,000 and Credit to Grant income P 760,000 c. Debit to Deferred grant income P 100,000 and Credit to Grant income P 100,000 d. None

Choose the letter of the correct answer At the beginning of the current year, an entity purchased an equipment for P 4,000,000 and received government grant of P 500,00 with respect to this asset. The equipment is depreciated on a straight-line basis over 5 years. The residual value of the equipment is P 200,000. The entity use deduction from asset approach. What would be the journal entry to recognize the grant income for the year? a. Debit to Deferred grant income P 660,000 and Credit to Grant income P 660,000 b. Debit to Deferred grant income P 760,000 and Credit to Grant income P 760,000 c. Debit to Deferred grant income P 100,000 and Credit to Grant income P 100,000 d. None

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter20: Income Taxation Of Trusts And Estates

Section: Chapter Questions

Problem 25P

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