58 Cake Corporation (CC), at the start of its fiscal year, received a Php21,001,400 subsidy from Ph Government to purchase equipment on March 31, 2020. The equipment cost is Php35,700,180 which is equally allocable within eight years with residual value of 6,957,820. The year generated Php8,603,900 revenue with corresponding salaries and administrative expenses of 5,481,345. If CC credited deferred revenue for the subsidy and amortize the grant venue over the equipment life, how much would be the net income at the end of its fiscal year operation? *

58 Cake Corporation (CC), at the start of its fiscal year, received a Php21,001,400 subsidy from Ph Government to purchase equipment on March 31, 2020. The equipment cost is Php35,700,180 which is equally allocable within eight years with residual value of 6,957,820. The year generated Php8,603,900 revenue with corresponding salaries and administrative expenses of 5,481,345. If CC credited deferred revenue for the subsidy and amortize the grant venue over the equipment life, how much would be the net income at the end of its fiscal year operation? *

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 13E: On March 1, 2019, Elkhart enters into a new contract to build a specialized warehouse for 7 million....

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