What amount of grant income should be recognized

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Question - On January 1, 2014, Exuberant Company received a consolidated grant of PI 2,000,000. Three-fourths of the grant will be utilized to purchase a college building for students from underdeveloped countries. The balance of the grant is for subsidizing the tuition costs of those students for four years from date of grant. The building was purchased in January 2014 and is to be depreciated using the straight line method over 10 years. The tuition costs paid in 2014 amounted to P600,000. What amount of grant income should be recognized for 2014?

Reference no: EM133180119

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