anonymous
  • anonymous
Finance question--A company is looking into a project. The intial costs are $11M to purchase assets. The governement is providing assistance by giving the company $6.5M. I would like to confirm whether this assistance should reduce the intial cost of the assets in one shot or the $6.5M should be amortized during the life of the asset by reducing the depriciation cost?
OpenStudy Feedback
jamiebookeater
  • jamiebookeater
See more answers at brainly.com
At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores et quas molestias excepturi sint occaecati cupiditate non provident, similique sunt in culpa qui officia deserunt mollitia animi, id est laborum et dolorum fuga. Et harum quidem rerum facilis est et expedita distinctio. Nam libero tempore, cum soluta nobis est eligendi optio cumque nihil impedit quo minus id quod maxime placeat facere possimus, omnis voluptas assumenda est, omnis dolor repellendus. Itaque earum rerum hic tenetur a sapiente delectus, ut aut reiciendis voluptatibus maiores alias consequatur aut perferendis doloribus asperiores repellat.

Get this expert

answer on brainly

SEE EXPERT ANSWER

Get your free account and access expert answers to this
and thousands of other questions

JamesJ
  • JamesJ
You should definitely post these sorts of questions in the Finance group, as this group is for Feedback on the site in general. None the less, I'll tell you that government grants are nearly always cash grants up front and you can consider them to be offset to the initial investment in year 0.

Looking for something else?

Not the answer you are looking for? Search for more explanations.