Question
ABC Construction Corporation uses the percentage of completion method of recognizing income from long term construction contacts. In 20x4 ABC entered into a fixed
ABC Construction Corporation uses the percentage of completion method of recognizing income from long term construction contacts. In 20x4 ABC entered into a fixed price contract to construct a bridge for P 30,000,000. Estimated costs to complete the construction and contract costs incurred up to 20x4 were as follows: Cumulative Costs Incurred As of December 31, 20x4 - P 2,000,000 As of December 31, 20x5 - P 11,000,000 As of December 31, 20x6 - P 20,000,000 Estimated Costs to Complete As of December 31, 20x4 - P 16,000,000 As of December 31, 20x5 - P 11,000,000 As of December 31, 20x6 - P 4,000,000 What is the percentage of completion during the year 20x6?
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Intermediate Accounting Reporting and Analysis
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
2nd edition
9781305727557, 1285453824, 9781337116619, 130572755X, 978-1285453828
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