4.Jana Crebs is a contractor for the construction of three large office buildings. At the beginning of 2010, two (2) buildings were in progress. The following data describe the status of these buildings at the beginning of the year:

ContractPrice

Costs Incurred to Jan. 1, 2010

Est'd. Costs to Complete

as of 1/1/2010

Building 1

P 4,000,000

P2,070,000

P1,380,000

Building 2

9,000,000

6,318,000

1,782,000

During 2010, the following costs were incurred

Building 1 P930,000 (estimated cost to complete of 12/31/2010, P750,00)

Building 2 P1,800,000 (job completed)

Compute the recognized revenue in 2010, assuming:

Percentage-of-Cost

Completion MethodRecovery Method

A.

P2,780,000

P3,612,000

B.

P2,780,000

2,682,000

C.

50,000

882,000

D.

50,000

180,000