Jessa Mae P.

Zerda
BSA 202
CHAPTER 15

QUESTIONS:

1. Define property, plant and equipment.

Property, plant, and equipment (PP&E) are a company's physical or tangible long-term
assets that typically have a life of more than one year. Examples of PP&E include buildings,
machinery, land, office equipment, furniture, and vehicles. Companies list their net PP&E on
their financial statements.

2. What are the major characteristics in defining property, plant and equipment?
 PPEs are tangible assets, meaning with physical substance.
 PPEs are used in business, meaning used in production or supply of goods or services for
rental purposes and for administrative purposes.
 PPEs are expected to be used over a period of more than one year.

3. Give examples of property, plant and equipment.

a. Land g. Motor Vehicle
b. Land improvements h. Furniture and Fixtures
c. Building i. Office Supplies
d. Machinery j. Patterns, Molds and Dies
e. Ship k. Tools
f. Aircraft l. Bearer Plants

4. Explain the recognition of property, plant and equipment.

An item of property, plant and equipment shall be recognized as an asset when it is
probable that future economic benefits associated with the asset will flow to the entity. And also,
if the cost of the asset can be measured reliably.

5. Explain the measurement of property, plant and equipment at recognition and after
recognition.
An item of property plant and equipment that qualifies for recognition as an asset shall be
measured at cost. Cost is the amount of cash or cash equivalent paid and the fair value of the
other consideration given to acquire an asset at the time of acquisition or construction.
6. What are the elements of cost of property, plant, and equipment?
 Purchase price, including import duties and nonrefundable purchase taxes, after deducting
trade discounts and rebates.
 Cost directly attributable to bringing the asset to the location and condition necessary for it
to be capable of operating in the manner intended by management.
 Initial estimate of the cost of dismantling and removing the item and restoring the site on
which it is located for which an entity has a present obligation.

7. Explain directly attribute costs.

Paragraph IAS 16.17 provides examples of directly attributable costs that can be included
in the cost of PP&E. Note that directly attributable costs do not need to be incremental.
Examples of directly attributable costs that qualify for recognition includes:
a. Cost of employee benefit arising directly from the construction or acquisition of the item
of property, plant and equipment.
b. Cost of site preparation
c. Initial delivery and handling cost
d. Installation and assembly cost
e. Professional fee
f. Costs of testing whether the asset is functioning properly.

8. Give examples of costs which are expensed rather than capitalized as property, plant,
and equipment.
 Cost of opening a new facility
 Cost of introducing a new product or service, including cost of advertising and
promotion.
 Cost of conducting business in a new location or with a new class of customer, including
cost of staff training.
 Administration and other general overheard cost.
 Cost incurred while an item capable of operating in the manner intended by management
has yet to be brought into use or is operated at less than full capacity.
 Initial operating loss.
 Cost of relocating or reorganizing part or all of an entity’s operations.
9. What is the cost of the asset acquired on a cash basis?
The cost of an item of PEE is the cash price equivalent at the recognition date. The cost
of asset acquired on a cash basis simply includes the cash paid plus directly attributable costs
such as freight, installation cost and other cost necessary in bringing the asset to the location and
condition for the intended use.

10. What is the cost of an asset acquired on account subject to a cash discount?
When an asset is acquired on account subject to a cash discount, the cost of the asset is
equal to the purchase price, including import duties and non-refundable purchase taxes, after
deducting trade discounts and rebates.

11. If an asset is acquired on the installment basis, the asset is recorded at what amount?
When payment for item of property, plant and equipment is deferred beyond normal
credit terms, the cost is the cash price equivalent. In other words, if an asset is offered at a cash
price and at an installment price and is purchased at the installment price, the asset shall be
recorded at the cash price.

12. Discuss the accounting procedure when an asset is acquired through the issuance of
share capital.
Philippine GAAP provides that if shares are issued for consideration other than actual
cash, the proceeds shall be measured by the fair value of the consideration received.
Accordingly, where a property is acquired through the Issuance of share capital, the property
shall be measured at an amount equal to the following m the order of priority:
a. Fair value of the property received.
b. Fair value of the share capital.
c. Fair value or stated value of the share capital.

13. Discuss the accounting procedure when an asset is acquired by issuing bonds payable.
PFRS 9, paragraph 5.1.1, provides the asset acquired by issuing bonds payable is measured in the
following order:
a. Fair value of bonds payable
b. Fair value of asset received.
c. Face amount of bonds payable.
14. Discuss the accounting procedure for recording an exchange.
PAS 16, paragraph 24, provides that the cost of an item of property, plant and equipment
acquired in exchange for a nonmonetary asset or a combination of monetary and nonmonetary
asset is measured at fair value plus any cash payment.

15. What would the cost of self-constructed property, plant and equipment include?
The cost of self-constructed asset is determined using the same principles as for an acquired
asset. The cost of self'-constructed property, plant and equipment includes:
a. Direct cost of materials
b. Direct cost of labor
c. Indirect cost and incremental overhead specifically
d. identifiable or traceable to the construction.

16. Explain derecognition of property, plant and equipment.

Derecognition means that the cost of the property, plant and equipment together with the
related accumulated depreciation shall be removed from the statement of financial position.
Moreover, PAS 16, paragraph 67, provides that the carrying amount of an item of property, plant
and equipment shall be derecognized on disposal or when no future economic benefits are
expected from the use or disposal.

17. Explain the treatment of fully depreciated property.

A property is said to be fully depreciated when the carrying amount is equal to zero, or
the carrying amount is equal to the residual value. In such a case, the asset account and the
related accumulated depreciation account are closed and the residual value is set up in a separate
account.

18. Define depreciation

Depreciation is defined as the systematic allocation of the depreciable amount of an asset
over the useful life. Depreciation is not so much a matter of valuation. Depreciation is a matter of
cost allocation in recognition of the exhaustion of the useful life of an item of property, plant and
equipment.
19. Explain the depreciation period.
The depreciable amount of an asset shall be allocated on a systematic basis over the
useful life. Depreciation of an asset begins when it is available for use, meaning, when the asset
is in the location and condition necessary for the intended use by management.

20. What is depreciable amount?

Depreciable amount is the cost of an asset or other amount substituted for cost, lees the
residual value. Each part of an item of property, plant and equipment with a cost that is
significant in relation to the total cost of the item shall be depreciated separately.

21. What is residual value?

Residual value is the estimated net amount currently obtainable id the asset is at the end
of the useful life. The residual value of an asset shall be reviewed at least at each financial year-
end and if expectation differs from previous estimated, the change shall be accounted for as a
change in an accounting estimate.

22. What is the useful life of an asset?

Useful life is either the period over which an asset is expected to be available for use by
the entity, or the number pf production or similar units expected to be obtained from the asset by
the entity.

23. When is the straight-line method adopted?

Under the straight-line method, the annual depreciation charge is calculated by allocating
the depreciable amount equally over the number of years of useful life. In other words, straight
line depreciation is a constant charge over the useful life of the asset.

24. When is the production method adopted?

Flow production is adopted when the product is built up through many segregated stages;
the product is built upon at each stage and then passed directly to the next stage where it is built
upon again. The production or output method assumes that depreciation is more a function of use
rather than passage of time. The useful life of the asset is considered in terms of the output it
produces or the number of hours it works.

25. When is the diminishing balance method adopted?

 This method is based on the assumption that in the earlier years the cost of repairs to the
assets is low and hence more amount of depreciation should be charged. The diminishing
balance or accelerated methods provide higher depreciation in the earlier years and lower
depreciation in the later years of the useful life of the asset. Thus, these methods result in a
decreasing depreciation charge over the useful life.

PROBLEMS:
Problem 15-1 (AICPA Adapted)
1. What is the total cost of land?
ANSWER: A. 9,160,000

2. What is the total cost of building?

ANSWER: B. 9,240,000

Problem 15-2 (AICPA Adapted)

What is the amount to be capitalized as cost of the machine?
ANSWER: B. 980,000

Problem 15-3 (AICPA Adapted)

What is the initial cost of the machine?
ANSWER: C. 2,050,000

Problem 15-4 (AICPA Adapted)

1. What is the cost of the machine acquired in the exchange?
ANSWER: A. 860,000

2. What is the gain on exchange?

ANSWER: B. 100,000

Problem 15-5 (AICPA Adapted)

At what amount should Eagle record the land acquired in exchange?
ANSWER: D. 3,800,000

Problem 15-6 (AICPA Adapted)

What amount should Yola Company record as cost of the oil inventory received in
exchange?
ANSWER: B. 1,300,000

Problem 15-7 (AICPA Adapted)

At what amount should Bronze record the land?
ANSWER: A. 1,100,000

Problem 15-8 (IAA)

What is the total increase in the equipment account as a result of the transaction?
ANSWER: A. 4,900,000

Problem 15-9 (IAA)

What is the total cost of office equipment after the apportionment of factory overhead?
ANSWER: C. 1,460,000

Problem 15-10 Multiple Choice (PAS 16) Problem 15-11 Multiple Choice (IAA)
1. D 4. D 1. B 4. C
2. B 5. D 2. A 5. B
3. D 3. A

Problem 15-12 Multiple Choice (AICPA Adapted)

1. D 3. C
2. A 4. B

Problem 15-13 Multiple Choice (PAS 16) Problem 15-14 Multiple Choice (IAA)
1. A 4. D 1. C 4. D
2. C 5. D 2. D 5. D
3. D 3. D

Problem 15-15 Multiple Choice (PAS 16)

1. D 6. A
2. D 7. B
3. C 8. B
4. A 9. C
5. C 10. D
CHAPTER 16

QUESTIONS:

1. Define a government grant.

PAS 20, paragraph 3, defines government grant as assistance to government in the form
of transfer of resources to an entity in return for part or future compliance with certain conditions
relating to the operating activities of the entity.

2. Explain the recognition and measurement of government grant.

Government grant shall be recognized when there is reasonable assurance that:
a. The entity will comply with the conditions attaching to the grant.
b. The grant will be received.
Government grant shall not be recognized on a cash basis as this is not consistent with generally
accepted accounting practice.

3. Explain accounting for grant in recognition of expenses.

Grant in recognition of specific expenses shall be recognized as income over the period
of the related expense.

4. Explain accounting for grant related to depreciable asset.

Grant related to depreciable asset shall be recognized as income over the periods and in
proportion to the depreciation of the related asset.

5. Explain accounting for grant related to non-depreciable asset requiring fulfillment of

certain conditions.
Grant related to non-depreciable asset requiring fulfillment of certain conditions shall be
recognized as income over the periods which bear the cost of meeting the conditions.

6. Explain accounting for grant received as compensation for expenses or losses already
incurred.
 Government grant that becomes receivable as compensation for expenses or losses
already incurred or for the purpose of giving immediate financial support to the entity with no
further related costs shall be recognized as income of the period in which it becomes receivable.

7. Explain the presentation of government grant related to asset.

Government grant related to asset shall be presented in the statement of financial position in
either of two ways:
a. By setting the grant as deferred income.
b. By deducting the grant in arriving at the carrying amount of asset.

8. Explain the presentation of government grant related to income.

Government grant related to income is presented as follows:
a. The grant is presented in the income statement, either separately or under the general
heading “other income”.
b. Alternatively, the grant is deducted from related expenses.

9. Define government assistance.

Government assistance is action by government designed to provide an economic benefit
specific to an entity or range of entities qualifying under certain criteria. The essence of
government assistance is that no value can reasonably be placed upon it. Examples of
government assistance are:
a. Free technical or marketing advice.
b. Provision of guarantee
c. Government procurement policy that is responsible for portion of the entity’s sales.

10. What are the necessary disclosures related to government grant?

a. The accounting policy adopted for government grant, including the method of
presentation adopted in the financial statements.
b. The nature and extent of government grant recognized in the financial statements and
an indication of other forms of government assistance from which the entity has
directly benefited.
c. Unfulfilled conditions and other contingencies attaching to government assistance
that has been recognized.
 It is not required to disclose the name of the government agency that gave the grant along
with the date of sanction of the grant by such government agency and the date when cash was
received in case of monetary grant.

PROBLEMS:

Problem 16-1 (PAS 20)

An entity received a government grant under the following independent situations:
Required: Prepare journal entries for the first year to record each independent government grant.

1. An entity received a grant of P30,000,00 from the British government in order to defray safety
and environmental costs within the area where the entity is located. The safety and
environmental costs are expected to be incurred over four years:

First year 2,000,000

Second year 4,000,000
Third year 6,000,000
Fourth year 8,000,000
20,000,000
Journal Entry:
Cash 30,000,000
Deferred grant income 30,000,000

Environmental expenses 2,000,000

Cash 2,000,000

Deferred grant income 3,000,000

Grant income 3,000,000
(2/20 x 30,000,000)

*First year (2/20 x 30,000,000) 3,000,000

Second year (4/20 x 30,000,000) 6,000,000
Third year (6/20 x 30,000,000) 9,000,000
Fourth year (8/20 x 30,000,000) 12,000,000
 30,000,000

2. An entity received a grant of P40,000,000.00 from the American government for the
construction of laboratory and research facility with an estimated cost of P50,000,000 and useful
life of 20 years.

Journal Entry:
Cash 40,000,000
Deferred grant income 40,000,000

Building 50,000,000
Cash 50,000,000

Depreciation 2,500,000
Accumulated depreciation 2,500,000
(50,000,000/20)

Deferred grant income 2,000,000

Grant income 2,000,000
(40,000,000/20)

3. An entity is granted a large tract of land in Cordillera by the Philippine Government. The fair
value of the land is P50,000,000. The grant requires that the entity shall construct a factory and
employ only personnel residing in the Cordillera region. The cost of the factory is P80,000,000
with useful life of 25 years.

Journal Entry:
Land 50,000,000
Deferred grant income 50,000,000

Factory 80,000,000
Cash 80,000,000
 Depreciation 3,200,000
Accumulated depreciation 3,200,000
(80,000,000/25)

Deferred grant income 2,000,000

Grant income 2,000,000
(50,000,000/25)

4. An entity received a grant of P10,000,000 from the Australian government to compensate

massive losses incurred because of a recent earthquake.

Journal Entry:
Cash 10,000,000
Grant income 10,000,000

Problem 16-2 (IFRS)

Required: Prepare journal entries for the current year in connection with the grant
Expenses:
First year 2,000,000
Second year 2,000,000
Third year 6,000,000
10,000,000

Journal Entry:
Cash 12,000,000
Deferred grant income 12,000,000

Land improvement 2,000,000

Cash 2,000,000

Deferred grant income 2,400,000

Grant income 2,400,000
 (2/10 x 12,000,000)

*First year (2/10 x 12,000,000) 2,400,000

Second year (2/10 x 12,000,000) 2,400,000
Third year (6/10 x 12,000,000) 7,200,000
12,000,000

Problem 16-3 (IFRS)

Required: Prepare journal entries for the current year in connection with the grant
Journal Entry:
Cash 12,000,000
Deferred grant income 12,000,000

Building 9,000,000
Cash 9,000,000
(12,000,000 x ¾)

Tuition cost expense 600,000

Cash 600,000

Depreciation 900,000
Accumulated depreciation 900,000
(9,000,000/10)

Deferred grant income 1,650,000

Grant income 1,650,000

Problem 16-4 (IFRS)

A. Deferred income approach
Journal Entry:
1. Machinery 7,000,000
Cash 7,000,000
2. Cash 1,000,000
Deferred grant income 1,000,000

3. Depreciation* 1,300,000
Accumulated depreciation 1,300,000

*Depreciation
Cost of machinery 7,000,000
Less: Residual value (500,000)
Depreciable amount 6,500,000
Annual depreciation (6,500,000/5) 1,300,000

Deferred grant income 200,000

Grant income (1,000,000/5) 200,000

B. Deduction from asset approach

Journal Entry:
1. Machinery 7,000,000
Cash 7,000,000

2. Cash 1,000,000
Deferred grant income 1,000,000

3. Depreciation* 1,100,000
Accumulated depreciation 1,100,000
*Depreciation
Acquisition cost 7,000,000
Less: Government grant (1,000,000)
Net cost 6,000,000
 Less: Residual value (500,000)
Depreciable amount 5,500,000
Annual depreciation (5,500,000/5) 1,100,000

Problem 16-5 (IFRS)

A. Deferred income approach
Journal Entry:
1. Machinery 5,400,000
Cash 5,400,000

2. Cash 400,000
Deferred grant income 400,000

3. Depreciation (Year 1) * 80,000

Accumulated depreciation 80,000

Deferred grant income (Y1) ** 1,080,000

Grant income (1,000,000/5) 1,080,000

Year declining balance

*Depreciation Year 1 Year 2 …
Deferred grant income 400,000 (400k-80k) 320,000
x depreciation rate/year 0.20 0.20
Annual depreciation 80,000 64,000

Year declining balance

 **Deferred grant income Year 1 Year 2 …
Deferred grant income 5,400,000 (5.4M-1.08M) 4,320,000
x depreciation rate/year 0.20 0.20
Annual depreciation 1,080,000 864,000

B. Deduction from asset approach

Journal Entry:
1. Machinery 5,400,000
Cash 5,400,000

2. Cash 400,000
Deferred grant income 400,000

3. Depreciation (Year 1) * 1,000,000

Accumulated depreciation 1,000,000

Year declining balance

*Depreciation Year 1 Year 2 …
Acquisition cost 5,400,000 (5.4M-1M) 4,400,000
Less: Gov’t grant (400,000) -
Depreciable amount 5,000,000 4,400,000
x depreciation rate/year 0.20 0.20
Annual depreciation 1,000,000 880,000
Problem 16-6 (IFRS)
Expenses:
2020 2,000,000
2021 4,000,000
2022 6,000,000
2023 8,000,000
2024 10,000,000
30,000,000
Journal Entry:
Cash 60,000,000
Deferred grant income 60,000,000

Environmental expenses 2,000,000

Cash 2,000,000

Deferred grant income 4,000,000

Grant income 4,000,000
(2/30 x 60,000,000)

*2020 (2/30 x 60,000,000) 4,000,000

2021 (4/30 x 60,000,000) 8,000,000
2022 (6/30 x 60,000,000) 12,000,000
2023 (8/30 x 60,000,000) 16,000,000
2024 (10/30 x 60,000,000) 20,000,000
60,000,000

What amount of income from the government grant is recognized for 2020?
ANSWER: D.4,000,000

Problem 16-7 (IFRS)

Journal Entry:
Cash 15,000,000
Deferred grant income 15,000,000

Equipment 25,000,000
Cash 25,000,000

Depreciation 2,500,000
Accumulated depreciation 2,500,000
(25,000,000/10)
 Deferred grant income 1,500,000
Grant income 1,500,000
(15,000,000/10)

What amount of income from the government grant is recognized for the current year?
ANSWER: A. 1,500,000

Problem 16-8 (IFRS)

Journal Entry:
Equipment 6,000,000
Cash 6,000,000

Cash 540,000
Deferred grant income 540,000

Depreciation 1,500,000
Accumulated depreciation 1,500,000
(6,000,000/4)

Deferred grant income 135,000

Grant income 135,000
(540,000/4)

What amount should be reported as deferred income on December 31, 2021?

ANSWER: C. 135,000

Problem 16-9 (IFRS)

Journal Entry:
Equipment 3,000,000
Cash 3,000,000
(12,000,000 x ¾)

Cash 500,000
Deferred grant income 500,000
 Depreciation 750,000
Accumulated depreciation 750,000
(3,000,000/4)

Deferred grant income 125,000

Grant income 125,000
(500,000/4)

Cost of Equipment 3,000,000

Less: Depreciation (750,000)
Carrying amount 2,250,000

What is the carrying amount of the asset on December 31, 2020?

ANSWER: B. 2,250,000

What amount of income from the government grant is recognized for 2020?
ANSWER: B. 125,000
Problem 16-10 Multiple Choice (PAS 20)
1. A 6. D
2. C 7. B
3. A 8. B
4. A 9. D
5. D 10. C

Problem 16-11 Multiple Choice (IFRS)

1. B 4. C
2. B 5. D
3. D

CHAPTER 17

QUESTIONS:

1. Define borrowing costs.

Borrowing costs in accordance with Philippine Accounting Standard, paragraph 23 are
defined as interest and other costs incurred by an enterprise in relation to the borrowing of funds.
Explaining in a more technical way, borrowing costs refer to the expense of taking out loan
expenses like interest payments incurred from a loan or any other kind of borrowing.

2. What is a qualifying asset for purposes of capitalization of borrowing cost?

A qualifying asset is an asset that takes a long period of time to get ready to be used. It
will differ depending on the circumstances of each case. Usually, a 12-month period will be a
reasonable period unless there is good justification to prolong it. Examples of qualifying assets
include:
 Manufacturing plants.
 Power generation facilities
 Things that take a considerable amount of time to manufacture before being sold or
Intangible asset
 Investment property
However, investments produced regularly in large amounts, frequently replicated, within a
short time are not considered qualifying properties. Furthermore, specific assets that are readily
converted into cash are not qualified assets.

3. Explain the accounting for borrowing cost.

Paragraph 8 of the Philippine accounting standard mandates the following borrowing cost rules:
 If the loan is directly due to the purchase, development or output of the qualifying asset,
the cost of the loan must be capitalized as the cost of the asset.
 All other expenses relating to borrowing shall be charged as incurred.
4. Explain the capitalization of borrowing cost for asset financed by specific borrowing.
According to the Philippine accounting standard, paragraph 12 provides that if the funds are
borrowed specifically for the purpose of acquiring a qualifying asset, the amount of the
capitalized borrowing cost is the actual borrowing cost incurred over the period less any
investment income from the temporary investment of those borrowings.

5. Explain the capitalization of borrowing cost for asset financed by general borrowing.
According to Philippine accounting standard 23, paragraph 14 states that if the funds are
lent in general and used for the purchase of a qualified asset, the value of the borrowing expense
is equal to the total carrying amount of the asset over the duration compounded by the
capitalization rate or the average interest rate.

6. Explain the capitalization of borrowing cost for asset financed by both specific and
general borrowing.
According to Philippine accounting standard 23, if the funds are borrowed specifically to
purchase a qualified asset, the sum of the capitalized borrowing costs shall be the real borrowing
costs incurred for the duration less any investment income resulting from the temporary
investment of those borrowings it is the specific borrowing while general borrowing in paragraph
14 provides that if the funds are generally borrowed, the capitalized borrowing costs shall be less
any investment income from the temporary investment of those borrowings.

7. Explain commencement of capitalization of borrowing cost.

For the three conditions for capitalization, the capitalization of borrowing costs has since been
extended by the capitalization of borrowing costs to a qualifying asset:
a. The company incurs the burden if the asset is used.
b. If the company incurs debt or interest payments.
c. When you are refinancing a house, you are simply an individual that undertakes
activities that are required to prepare its property so that it can be sold (used) again.

8. Explain suspension of capitalization of borrowing cost.

Capitalization of borrowing cost shall be suspended during extended period in which
active development is interrupted. However, capitalization of borrowing cost is not normally
suspended during a period when substantial technical and administrative work is being carried
out. Capitalization of borrowing cost is not also suspended when a temporary delay is a
necessary part of the process of getting an asset ready for its intended use or sale.

9. Explain cessation of capitalization of borrowing cost

Capitalization of borrowing cost shall cease when substantially all the activities necessary
to prepare the qualifying asset for its intended use or sale are complete. Asset is normally ready
for its intended use or sale when the physical construction of the asset is complete, even though
routine administrative work might still continue. When the construction of a qualifying asset is
completed in parts and each part is capable of being used while construction continues on other
parts, capitalization of borrowing cost shall cease when substantially all activities necessary to
prepare that part for its intended use or sale are complete.

10. What are the necessary disclosures related to borrowing cost?

  The amount of borrowing cost capitalized during the period.
 The capitalization rate used to determine the amount of borrowing cost eligible for
capitalization.
Segregation of assets are "qualifying assets" from other assets in the statement of financial
position is not required to be disclosed.

PROBLEMS:

Problem 17-1 (IFRS)

What is the carrying amount of the plant on November 30, 2017?
ANSWER: B. 6,470,000

Problem 17-2 (IFRS)

What amount of capitalizable borrowing cost should be included in the cost of the building?
ANSWER: D. 1,800,000

Problem 17-3 (AICPA Adapted)

1. What amount of interest should be capitalized?
ANSWER: B. 516,000

2. What is the interest expense for the current year?

ANSWER: C. 774,000

Problem 17-4 (IAA)

What amount should be capitalized as interest for the current year?
ANSWER: C. 490,000

Problem 17-5 (IAA)

What amount of interest should be capitalized during 2020?
ANSWER: C. 247,000

Problem 17-6 (AICPA Adapted)

What amount of interest is capitalized as cost of the new building?
ANSWER: B. 1,450,000

Problem 17-7 (IAA)

1. What is the capitalizable borrowing
ANSWER: C. 280,000

2. What is the cost of the new building?

ANSWER: B. 6,280,000

3. What is the interest expense for 2020?

ANSWER: A. 2,220,000
Problem 17-8 (PAS 23)
1. D 6. C
2. C 7. C
3. D 8. D
4. C 9. A
5. A 10. C

Problem 17-9 Multiple choice (IFRS)

1. B 6. C
2. B 7. A
3. C 8. A
4. A 9. B
5. B 10. D