On January 1, 20x1, Entity A received land with fair of ₱200,000 from the government conditioned on the construction of a building on the lot. Entity A started immediately the construction and it was completed on December 31, 20x1 for a total cost of ₱1,000,000. The building has an estimated useful life of 10 years and zero residual value. How much is the income from government grant in 20x1 and 20x2, respectively? 20x1 20x2 0 200,000 200,000 0 0 20,000 20,000 20,000 How much is the carrying amount of the building on December 31, 20x2 under the following presentations? Gross presentation Net presentation 1,000,000 800,000 900,000 720,000 800,000 640,000 800,000 533,333 How much is the depreciation expense recognized in 20x3 under the following presentations? Gross presentation Net presentation 100,000 80,000 100,000 100,000 80,000 100,000 80,000 80,000
On January 1, 20x1, Entity A received land with fair of ₱200,000 from the government conditioned on the construction of a building on the lot. Entity A started immediately the construction and it was completed on December 31, 20x1 for a total cost of ₱1,000,000. The building has an estimated useful life of 10 years and zero residual value. How much is the income from government grant in 20x1 and 20x2, respectively? 20x1 20x2 0 200,000 200,000 0 0 20,000 20,000 20,000 How much is the carrying amount of the building on December 31, 20x2 under the following presentations? Gross presentation Net presentation 1,000,000 800,000 900,000 720,000 800,000 640,000 800,000 533,333 How much is the depreciation expense recognized in 20x3 under the following presentations? Gross presentation Net presentation 100,000 80,000 100,000 100,000 80,000 100,000 80,000 80,000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments
Section: Chapter Questions
Problem 3RE: Utica Corporation paid 360,000 to purchase land and a building. An appraisal showed that the land is...
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On January 1, 20x1, Entity A received land with fair of ₱200,000 from the government conditioned on the construction of a building on the lot. Entity A started immediately the construction and it was completed on December 31, 20x1 for a total cost of ₱1,000,000. The building has an estimated useful life of 10 years and zero residual value.
How much is the income from government grant in 20x1 and 20x2, respectively?
20x1 20x2
0 200,000
200,000 0
0 20,000
20,000 20,000
How much is the carrying amount of the building on December 31, 20x2 under the following presentations?
Gross presentation Net presentation
1,000,000 800,000
900,000 720,000
800,000 640,000
800,000 533,333
How much is the depreciation expense recognized in 20x3 under the following presentations?
Gross presentation Net presentation
100,000 80,000
100,000 100,000
80,000 100,000
80,000 80,000
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