Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On 1 January 20X1 Sty received 1m from the local government on the condition that they employ at least 100 staff each year for the

On 1 January 20X1 Sty received 1m from the local government on the condition that they employ at least 100 staff each year for the next 4 years. Due to an economic downturn and reduced consumer demand on 1 January 20X2, Sty no longer needed to employ any more staff and the conditions of the grant required full repayment. What should be recorded in the financial statements on 1 January 20X2?

A Reduce deferred income balance by 750,000 B Reduce deferred income by 750,000 and recognise a loss of 250,000 C Reduce deferred income by 1,000,000 D Reduce deferred income by 1,000,000 and recognise a gain of 250,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cornerstones of Managerial Accounting

Authors: Mowen, Hansen, Heitger

3rd Edition

324660138, 978-0324660135

More Books

Students also viewed these Accounting questions

Question

Find all orders of subgroups of the given group. Z 6

Answered: 1 week ago