Question
On January 1. 2020, an entity entered into a long-term construction contract to be completed on June 30, 2020 at an original contract price of
On January 1. 2020, an entity entered into a long-term construction contract to be completed on June 30, 2020 at an original contract price of P2,400,000. Due to the change in structural design as requested by the customer, the contract price increased by P3,600,000 for the year ended December 31, 2021. The Project was completed on September 30, 2022 which resulted to penalty of P1,200,000 for delayed construction. The following data were provided by the cost accountant of the entity:
Cost incurred during the year
2020 P360,000
2021 P3,384,000
2022 P456,000
Estimated remaining cost to complete at the end of the year
2020 P1,440,000
2021 P2,496,000
2022 --
29.What is the realized gross loss to be recognized by the entity for the year ended December 31, 2021under percentage of completion method?
30.What is the realized gross profit to be recognized by the entity for the year ended December31, 2022under cost recovery method?
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Mergers, Acquisitions, And Corporate Restructurings
Authors: Patrick A Gaughan
7th Edition
1119380766, 9781119380764
