1. A. What is the percentage of completion rate as of 2025?

B. What is the gross profit or (Loss) for the year 2025?

2. Compute for the net income for year 3.

Daniel Corp. entered a long-term project in 2024 and continued through 2025. Daniel Corp. presently has available dependable and reliable estimates. As of 2025, Daniel billed 2/5 of the total contract price. Some other information about the project were as follows: 2024 2025 Construction cost to date P446,250 P1,260,000 Excess of Construction in Progress over Billings - due from / (due to) 116,250 (183,750) Contract Billings to date 435,000 1,837,500 Collections from the contract 405,000 1,312,500 What is the percentage of completion rate as of 2025? ABC Co. a private contractor, wins a bid to construct a railway for the government. The terms of the arrangement are as follows: Construct a road-completing construction within a year; Maintain and operate the road for four years. Resurface the road when the original surface has deteriorated below specified condition. The operator estimates that it will have to undertake the resurfacing at the end of year 3. The operator collects toll fees of P200,000 per year. The contract ends in year 5. The operator estimates that the resurfacing expenditure increases by P5,000 for each year that the road is used. The appropriate discount rate is 10%. At contract inception, ABC Co. identifies a single performance obligation for construction services. ABC Co. makes the following estimates: Year 1 Construction Service Operation Services Road Resurface Contract Cost P200,000 15,000 10,000 Stand Alone Selling Price Forecast cost + 25% N/A N/A 2-5 3 At the start of year 1, ABC Co. obtains a 4-year, 10%, P200,000 bank loan to help finance the arrangement. The principal and interest on the loan matures in lump sum. Compute for the net income for year 3. Daniel Corp. entered a long-term project in 2024 and continued through 2025. Daniel Corp. presently has available dependable and reliable estimates. As of 2025, Daniel billed 2/5 of the total contract price. Some other information about the project were as follows: 2024 2025 Construction cost to date P446,250 P1,260,000 Excess of Construction in Progress over Billings - due from / (due to) 116,250 (183,750) Contract Billings to date 435,000 1,837,500 Collections from the contract 405,000 1,312,500 What is the percentage of completion rate as of 2025? ABC Co. a private contractor, wins a bid to construct a railway for the government. The terms of the arrangement are as follows: Construct a road-completing construction within a year; Maintain and operate the road for four years. Resurface the road when the original surface has deteriorated below specified condition. The operator estimates that it will have to undertake the resurfacing at the end of year 3. The operator collects toll fees of P200,000 per year. The contract ends in year 5. The operator estimates that the resurfacing expenditure increases by P5,000 for each year that the road is used. The appropriate discount rate is 10%. At contract inception, ABC Co. identifies a single performance obligation for construction services. ABC Co. makes the following estimates: Year 1 Construction Service Operation Services Road Resurface Contract Cost P200,000 15,000 10,000 Stand Alone Selling Price Forecast cost + 25% N/A N/A 2-5 3 At the start of year 1, ABC Co. obtains a 4-year, 10%, P200,000 bank loan to help finance the arrangement. The principal and interest on the loan matures in lump sum. Compute for the net income for year 3