Question
ABC Company is granted a grant by the local government to purchase land for site. The grant is a zero-interest-bearing note for 4 years. The
ABC Company is granted a grant by the local government to purchase land for site. The grant is a zero-interest-bearing note for 4 years. The note is issued on January 2, 2011, for P3,000,000 payable on January 2, 2015. ABC's incremental borrowing rate is 6%. The land is not purchased until July 15, 2011.
What is the grant revenue to be recognized on December 31, 2011?
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Managerial Accounting
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
13th Edition
978-0073379616, 73379611, 978-0697789938
