On January 1, 2015, MERKS Company received a grant of P25,000,000 form the American government in order to defray safety and environmental costs within the area where the entity is located. The safety...

On January 1, 2015, MERKS Company received a grant of P25,000,000 form the American government in order to defray safety and environmental costs within the area where the entity is located. The safety and environmental costs are expected to be incurred over four year, respectively, P4,000,000, P2,000,000, P8,000,000 and P6,000,000. What amount should be recognized in 2015? *