8/15/22, 10:52 AM Government Grant

Government Grant Total points 8/10

The respondent's email (msoliven@gbox.adnu.edu.ph) was recorded on submission of this

form.

0 of 0 points

Passcode *

FMCC

Untitled Section 8 of 10 points

On January 1, 2020, the City of Makati donated P10,000,000 to Globe Inc. *2/2
to be used by the former for the construction of its new satellite. The total
cost of manufacturing the satellite is P30,000,000. It has a useful life of
20 years and residual value of P5,000,000. It is GLOBE’s policy to account
for government grant as deferred income. What is the carrying value of
deferred income from government grant on 12/31/2022 GLOBE’s
Statement of Financial Position?

a. P8,500,000

b. P8,000,000

c. P9,000,000

d. P9,500,000

https://docs.google.com/forms/d/e/1FAIpQLSes4yogRjSnSMFVJIv0bH5BkirycBZRmqF7h25Mq4_qA8gwPg/viewscore?vc=0&c=0&w=1&flr=0&viewsc… 1/3
8/15/22, 10:52 AM Government Grant

SM Inc. received P9,000,000 from the City of Lipa on December 31, 2020. *0/2
The condition of the donation is that SM shall clean the river near it for 3
years. The following are the costs incurred by SM Inc. in cleaning the
river:2020 – P4,000,000 2021 – P6,000,000 2022 –
P10,000,000What is the carrying value of the deferred income to be
presented in the 12/31/2021 SM’s Statement of Financial Position?

a.P3,000,000

b. P6,000,000

c. P4,500,000

d. P7,200,000

Correct answer

c. P4,500,000

UST Inc., a private profitable educational institution, received P5,000,000 *2/2

from the City of Manila on January 1, 2020. The deed of donation
provides that the cash shall be used by UST Inc. for its community
involvement activities for 4 years. The following are the expenditures
incurred by UST Inc. for its community involvement activities:   2020 –
P1,000,000; 2021 – P2,000,000; 2022 – P3,000,000; 2023
– P4,000,000. What is the realized income from government grant to be
recognized by UST Inc. for the year ended December 31, 2022?

a. P1,000,000

b. P3,000,000

c. P2,000,000

d. P1,500,000

https://docs.google.com/forms/d/e/1FAIpQLSes4yogRjSnSMFVJIv0bH5BkirycBZRmqF7h25Mq4_qA8gwPg/viewscore?vc=0&c=0&w=1&flr=0&viewsc… 2/3
8/15/22, 10:52 AM Government Grant

On January 1, 2020, GV Inc. received P3,000,000 from Province of *2/2

Batangas for the calamity loss it incurred in its satellite during the
typhoon MARING in 2019. The remaining useful of the satellite is 3 years.
What is the realized income from government grant to be recognized by
GV Inc. for the year ended December 31, 2020?

a. P1,000,000

b. P3,000,000

c. P2,000,000

d. Zero

On January 1, 2020, The Philippine Government donated P40,000,000 to 2/2

AYALA LAND Inc. to be used by the former for the construction of its new
car factory. The total cost of constructing the factory is P100,000,000. It
has a useful life of 50 years and residual value of P10,000,000. It is AYALA
LAND’s policy to account for government grant as a deduction from the
cost of the related asset. What is the carrying value of the building on
December 31, 2020?

a. P98,200,000

b. P98,000,000

c. P59,000,000

d. P49,000,000

This form was created inside of Ateneo de Naga University.

 Forms

https://docs.google.com/forms/d/e/1FAIpQLSes4yogRjSnSMFVJIv0bH5BkirycBZRmqF7h25Mq4_qA8gwPg/viewscore?vc=0&c=0&w=1&flr=0&viewsc… 3/3