How much is the income from government grant recognized

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Reference no: EM132817655

Problem 1: On January 1, 20x1, various properties of ABOMINATE DISLIKE Co. were destroyed due to flood. It was estimated that the cost of the destroyed properties amounted to ?60,000,000. On July 1, 20x1, ABOMINATE received ?8,000,000 from the government as a financial aid. ABOMINATE Co. estimates that it would take about 5 years before it can recover from the loss. How much is the income from government grant recognized in 20x1?

a. 8,000,000

b. 1,600,000

c. (52,000,000)

d. 0

Reference no: EM132817655

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