A Company entered into a construction agreement in 2019 that called for a contract price of P9,600,000. At the beginning of 2020, a change in order increase in the initial contract price by P480,000. In relation to the project, the following data were obtained:

Description 2019 2020

Costs incurred to date P4,920,000 P8,640,000

Estimated costs to complete 4,920,000 2,160,000

Billings made to date 5,280,000 8,700,000

Collections made to date 4,920,000 8,700,000

Compute the amount of construction in progress (net) for the year 2020.

Group of answer choices

A. POC method - P780,000 liabilities ; Cost recovery method - P780,000 Liabilities

B. POC method - P60,000 liabilities ; Cost recovery method - P60,000 Liabilities

C. POC method - P780,000 Assets ; Cost recovery method - P780,000 Assets

D. POC method - P630,000 liabilities ; Cost recovery method - P630,000 Liabilities