On 01/01/2020, the government provided equipment by JD 350,000 to the company as a grant in...

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On 01/01/2020, the government provided equipment by JD 350,000 to the company as a grant in order to reducing environmental pollution. The company paid JD 750,000 for the equipment in order to use the government equipment grant. The salvage value at the end of the period is JD 100,000. The useful life for this equipment is 7 years and the company uses straight-line depreciation method. Then the company achieved JD 1,000,000 for each year as a profit before grant and depreciation expense. What are the company's profits after grant and depreciation expense for the first year? On 01/01/2020, the government provided equipment by JD 350,000 to the company as a grant in order to reducing environmental pollution. The company paid JD 750,000 for the equipment in order to use the government equipment grant. The salvage value at the end of the period is JD 100,000. The useful life for this equipment is 7 years and the company uses straight-line depreciation method. Then the company achieved JD 1,000,000 for each year as a profit before grant and depreciation expense. What are the company's profits after grant and depreciation expense for the first year?

Answer rating: 100% (QA)

A grant received from the government may be taxable or non taxable depends upon the nature of ... View the full answer