PLEASE PROVIDE COMPLETE SOLUTIONS FOR BOTH. THANK YOU.

Use the following information for the next three questions: In 20x1, Friedland Co. entered into a contract with a customer for the construction of a building. The contract price is a fixed fee of P12,000,000. Information on the contract is shown below: 20x1 20x2 Costs incurred per year 3,920,000 Estimated costs to complete 5,880,000 5,080,000 1,000,000 4 The performance obligation is satisfied over time. However, Friedland Co, cannot reasonably measure the outcome of the performance obligation but expects to recover all contract Posts incurred. How much are the gross profit, revenue and cost of construction recognized in 20x2, respectively? Gross profil Revenue Cost of construction a0 0 0 b. 0 3,920,000 3,920,000 c0 5,080,000 5,080,000 d. (420,000) 0 0 5. At contract inception, Friedland Co. assessed the contract in accordance with the principles of PFRS 15 and concludes that it has a single performance obligation that is satisfied at a point in time, which is when the construction is completed and legal title over the constructed building is transferred to the customer. How much are the gross profit, revenue and cost of construction recognized in 20x2, respectively? Gross profit Revenue Cost of construction a. 0 0 0 b. 0 3,920,000 3,920,000 c. 0 2,400,000 2,400,000 d. (420,000) 0 0 for the