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On January 1, 2XX1, Valley Company entered into a 3-year construction contract with an estimated gross revenue of P3,000,000. The entity used the percentage of

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On January 1, 2XX1, Valley Company entered into a 3-year construction contract with an estimated gross revenue of P3,000,000. The entity used the percentage of completion in recognizing income and reported construction income as: The cost recovery method is used for income tax purposes, and the entity reported construction income as: The construction contract is the only timing difference between pretax accounting income and taxable income. The entity reported income before construction income and tax as: Complete the table below

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