Reference no: EM132817646
On January 1, 20x1, CHIDE SCOLD Co. received cash of ?16,000,000 from a local government to be used in constructing a building. The construction was completed on December 31, 20x1 for a total cost of ?40,000,000. The building will be depreciated over 20 years.
Problem 1: If CHIDE Co. uses the gross presentation of government grants, how much is the carrying amount of the deferred income from the government grant on December 31, 20x5?
a. 15,200,000
b. 12,800,000
c. 12,000,000
d. 0
Problem 2: If CHIDE Co. uses the net presentation of government grants, how much is the carrying amount of the deferred income from the government grant on December 31, 20x5?
a. 15,200,000
b. 12,800,000
c. 12,000,000
d. 0
Problem 3: If CHIDE Co. uses the gross presentation of government grants, how much is the carrying amount of the building on December 31, 20x1?
a. 40,000,000
b. 24,000,000
c. 38,000,000
d. 22,800,000
Problem 4: If CHIDE Co. uses the net presentation of government grants, how much is the carrying amount of the building on December 31, 20x1?
a. 40,000,000
b. 24,000,000
c. 38,000,000
d. 22,800,000
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