How much is the carrying amount of the deferred income

Reference no: EM132817650

On January 1, 20x1, MACABRE HORRIBLE Co. received cash of ?16,000,000 from a local government to be used to defray safety and other hazard-related costs over a five-year period. It was estimated that such costs will total ?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.

Problem 1: If MACABRE 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, 20x1?

a. 14,000,000

b. 12,800,000

c. 12,000,000

d. 0

Problem 2: If MACABRE 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, 20x1?

a. 14,000,000

b. 12,800,000

c. 12,000,000

d. 0

Problem 3: If MACABRE Co. uses the gross presentation of government grants, how much safety expense is recognized in 20x1?

a. 4,000,000

b. 2,400,000

c. 2,000,000

d. 0

Problem 4: If MACABRE Co. uses the net presentation of government grants, how much is safety expense is recognized in 20x1?

a. 4,000,000

b. 2,400,000

c. 2,000,000

d. 0

Reference no: EM132817650

Questions Cloud

Determine the optimal production batch size for the supplier : A supplier to Toyota stamps out parts using a press. Changing a part type requires the supplier to change a die on the press. This changeover currently

How much is carrying amount of deferred income for unfledged : UNFLEDGED IMMATURE Co. received land from government, How much is the carrying amount of the deferred income from the government grant on December 31, 20x2?

Compute total standard cost per book for Publisher Company : Compute the total standard cost per book for Publisher's Company using the following information: Direct Materials: 1 ream of paper allowed per book

Advantages and disadvantages of working : What other modes or examples of transportation operations have used the Hub and Spoke system?

How much is the carrying amount of the deferred income : If MACABRE Co. uses the gross presentation, How much is the carrying amount of the deferred income from the government grant on December 31, 20x1?

Probability of performing needed : If the system is to have a 0.91 probability of performing, what is the minimum probability of performing needed by each of the individual components?

What is the annual payment Sam must make to pay : Sam friend would like to reimbursed for the time value of money at a 9% annual rate. What is the annual payment Sam must make to pay back his friend

Pert analysis of the project : Using the provided data values for minimum expected activity durations and maximum expected activity durations, use Excel to provide a PERT analysis of the proj

How much is the carrying amount of the building on december : If CHIDE Co. uses the gross presentation of government grants, how much is the carrying amount of the building on December 31, 20x1?

User Account

All Pages