On January 1, 20x1, ABC Co. received 2,000,000 grant from the government to aid in the construction of a new building. The construction of the building was finished on March 31, 20x2 for a total cost of 6,000,000. The building is estimated to have a useful life of 30 years and a residual value of 1,000,000. If ABC Co. uses the gross presentation, how much is the income from the government grant in 20x1? If ABC Co. uses the gross presentation, how much is the carrying amount of the building on December 31, 20x2? If ABC Co. uses the gross presentation, how much is the income from the government grant in 20x2? If ABC Co. uses the gross presentation, how much is the depreciation expense in 20x2? If ABC Co. uses the gross presentation, how much is the balanced of the deferred income from government grant on December 31, 20x2? If ABC Co. uses the net presentation, how much is the carrying amount of the building on December 31, 20x2? If ABC Co. uses the net presentation, how much is the depreciation expense in 20x1?
On January 1, 20x1, ABC Co. received 2,000,000 grant from the government to aid in the construction of a new building. The construction of the building was finished on March 31, 20x2 for a total cost of 6,000,000. The building is estimated to have a useful life of 30 years and a residual value of 1,000,000. If ABC Co. uses the gross presentation, how much is the income from the government grant in 20x1? If ABC Co. uses the gross presentation, how much is the carrying amount of the building on December 31, 20x2? If ABC Co. uses the gross presentation, how much is the income from the government grant in 20x2? If ABC Co. uses the gross presentation, how much is the depreciation expense in 20x2? If ABC Co. uses the gross presentation, how much is the balanced of the deferred income from government grant on December 31, 20x2? If ABC Co. uses the net presentation, how much is the carrying amount of the building on December 31, 20x2? If ABC Co. uses the net presentation, how much is the depreciation expense in 20x1?
Chapter5: Introduction To Business Expenses
Section: Chapter Questions
Problem 39P
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Question
On January 1, 20x1, ABC Co. received 2,000,000 grant from the government to aid in the construction of a new building. The construction of the building was finished on March 31, 20x2 for a total cost of 6,000,000. The building is estimated to have a useful life of 30 years and a residual value of 1,000,000.
- If ABC Co. uses the gross presentation, how much is the income from the government grant in 20x1?
- If ABC Co. uses the gross presentation, how much is the carrying amount of the building on December 31, 20x2?
- If ABC Co. uses the gross presentation, how much is the income from the government grant in 20x2?
- If ABC Co. uses the gross presentation, how much is the
depreciation expense in 20x2? - If ABC Co. uses the gross presentation, how much is the balanced of the deferred income from government grant on December 31, 20x2?
- If ABC Co. uses the net presentation, how much is the carrying amount of the building on December 31, 20x2?
- If ABC Co. uses the net presentation, how much is the depreciation expense in 20x1?
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