Tata Company received a government grant of P2,000,000 related to a factory building that it bought...

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Tata Company received a government grant of P2,000,000 related to a factory building that it bought i January 2012. The entity's policy is to treat the grant as deferred income. Tata Company acquired th building from an industrialist identified by the government. If Tata Company did not purchase th building, which was located in the slums of the city, it would have been repossessed by the governmen agency. Tata Company purchased the building for P12,000,000. The useful life of the building is 10 year with no residual value. On January 1, 2013, the entire amount of the government grant became repayabl by reason of noncompliance with conditions attached to the grant. What is the loss to be recognized resulting from the repayment of the grant in 2014? Tata Company received a government grant of P2,000,000 related to a factory building that it bought i January 2012. The entity's policy is to treat the grant as deferred income. Tata Company acquired th building from an industrialist identified by the government. If Tata Company did not purchase th building, which was located in the slums of the city, it would have been repossessed by the governmen agency. Tata Company purchased the building for P12,000,000. The useful life of the building is 10 year with no residual value. On January 1, 2013, the entire amount of the government grant became repayabl by reason of noncompliance with conditions attached to the grant. What is the loss to be recognized resulting from the repayment of the grant in 2014?

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When the government grant is received Tata Company records it as deferred income since it has not ye... View the full answer