n January 1, 2020, Company XYZ received a piece of land with fair value of P2,000,000 from the government with a condition that a building will be constructed on it. The building was completed on December 31, 2020 for a total cost of P10,000,000. The building has an estimated useful life of 10 years with no residual value.

1.1 How much is the income from the government grant in 2021? ______________

1.2 How much is the income from the government grant in 2022? ________________

1.3 How much is the carrying amount of the building on December 31, 2022 under gross presentation? P____________

1.4 How much is the carrying amount of the building on December 31, 2022 under net presentation? P____________

1.5 How much will be the depreciation expense to be recognized in 2023 under gross presentation?

P_____________

1.6 How much will be the depreciation expense to be recognized in 2023 under net presentation?

P_____________