King Inc. began work in 2018 on a contract for P8,400,000. Other data are as follows:

2018 2019

Cost Incurred 3,600,000.00 5,600,000.00

Estimated costs to Complete 2,400,000.00

Billings during the year 2,800,000.00 8,400,000.00

Collections to date 2,000,000.00 7,200,000.00

1. Using the percentage of completion method, what is the gross profit to be recognized in 2018?

2. Using the percentage of completion method, what is the gross profit to be recognized in 2019?

3. Using the recovery method, what is the gross profit to be recognized in 2018?

4. Using the recovery method, what is the gross profit to be recognized in 2019?

5. What is the balance in the Construction in progress account at the end of 2018 using the percentage of completion method?