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Question - At the beginning of 2017, A Company received a government grant to purchase a building. The amount of the grant was P6,000,000 and was recorded as reduction of the cost of the building.
The building was purchased for P20,000,000 on the date the grant was received, with an estimated useful life of 16 years and an estimated residual value of P200,000.
On January 1, 2020, the entire amount of the grant became repayable by reason of noncompliance with conditions attached to the grant.
What the depreciation expense recorded in 2020 related to the building.
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