On January 1, 2020, ABC ENTITY entered into a contract for the construction of a building at an original price of 2,000,000 to be completed on June 30, 2022 subject to penalty of 500,000 on the year it becomes virtually certain that construction will not be completed on the date agreed upon. On January 1, 2021, the contract price increased by 2,500,000 due to the change in design of the building requested by the customer.

12/31/2020 12/31/2021 12/31/2022 CUMULATIVE COSTS INCURREDAS 600 000 3 075 000 3 780 000 OF THE END OF THE YEAR ESTIMATED REMAINING COST TO 900 000 1 025 000 420 000 COMPLETE AT THE END OF THE YEAR