How much is the loss on repayment of government

Assignment Help Accounting Basics

Reference no: EM132817670

Repayment of grant related to income

Problem 1: On January 1, 20x1, SIBILATE HISS Co. received cash of ?16,000,000 from the government to be used to defray safety and other hazard-related costs over a five-year period. It was estimated that such costs will accumulate to ?32,000,000 over the next five years. In 20x1 and 20x2, actual costs of safety and other hazard-related costs amounted to ?4,000,000 and ?4,800,000, respectively. On January 1, 20x3, the government demanded repayment of the ?16,000,000 given as grant in 20x1. How much is the loss on repayment of government grant recognized in 20x3?

a. 4,400,000

b. 3,800,000

c. 2,800,000

d. 0

Reference no: EM132817670

Questions Cloud

Evaluate and record financial data for organisation : Suppose you need to collect, evaluate and record financial data for your organisation. Answer the following questions: Where will you find information you need

How much is the capitalizable borrowing cost : By the end of the project on December 31, 20x1, investment income of ?600,000 had been earned. How much is the capitalizable borrowing cost?

How much is loss on repayment of government grant recognized : How much is the loss on repayment of government grant recognized in 20x4? DREARY DISMAL Co. received cash of ?16,000,000 from the government

What is the present value today : Currently they have a total of $25,000 in a savings account. What is the present value today of the $25,000 in the couple's savings account

How much is the loss on repayment of government : Government demanded repayment of the ?16,000,000 given as grant in 20x1. How much is the loss on repayment of government grant recognized in 20x3?

How might improve the outcome of the programs : In order to achieve their overall mission, the center is looking into how tobacco cessation programs targeting the LatinX community can be improved.

What is the maximum amount SRK Ltd would be willing to pay : Question - SRK Ltd produces three different products. What is the maximum amount SRK Ltd. would be willing to pay for another 100 machine hours

How much is the income from government grant on january : Payable on December 31, 20x3. Prevailing interest rate for this type of loan is 10%. How much is the income from government grant recognized in 20x1?

Identify a current health disparity in your community : Identify a current health disparity in your community. Suggest and defend two strategies that may decrease the disparity. Explain how your strategies.

User Account

All Pages