456 Inc is one of the cooperatives of fishermen located by the Laguna Lake in Calamba City. For the past five years, they have continued to plea to the City Government of Calamba to build around the lake boathouses, port and docking area to help them with their operations and to protect their boats from being destroyed by the storm. Their request was eventually granted in 2020 much to the delight of all the fishermen of Calamba City. By the beginning of 2021, the infrastructure was ready for use. The boathouse, port, and docking area costed P5,000,000 and it was estimated that it will have a useful life of 20 years. How much should 456 Inc recognize in profit or loss in 2021?

a. 0

b. 250,000

c. 1,000,000

d. 5,000,000

Answer rating: 100% (QA)

ANSWER D is the correct answer 5000000 A profit and loss statement ... View the full answer