XYZ Company received a P2,800,000 govemment grant for a factory building it purchased in January 20x1. The grant will be treated as deferred income under the company's policy. The building was purchased for P17,000,000 by the company. The building has a ten-year useful life and no residual value. Because of certain violations with the grant's requirements, the entire sum of the government grant became repayable on January 1, 20x3.

XYZ Company received a P2,800,000 govemment grant for a factory building it purchased in January 20x1. The grant will be treated as deferred income under the company's policy. The building was purchased for P17,000,000 by the company. The building has a ten-year useful life and no residual value. Because of certain violations with the grant's requirements, the entire sum of the government grant became repayable on January 1, 20x3.

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

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter5: Introduction To Business Expenses

Section: Chapter Questions

Problem 39P

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