Tigasin Builders Company began its construction activities in 2017. At the end of its first

year's operation, the following projects (and other relevant information) are still

uncompleted:

Project Contract

Price

Billings thru

12/31

Collections

thru 12/31

Actual costs

thru 12/31

Est cost to

Complete, 12/31

Angeles City 15,000,000 10,000,000 9,000,000 12,400,000 3,100,000

Palo City 17,500,000 5,500,000 5,250,000 3,390,000 13,560,000

Tigasin Builders will use the cost-to-cost percentage of completion in accounting for the

Angeles City project, while the cost recovery method will be used for the Palo City

project. 1. Compute the Construction Revenue to be recognized by Tigasin Builders for the

Angeles City project in 2017. 2. Determine how (1) the Angeles City Project and (2) the Palo City Project will be shown

on the year-end balance sheet.

CASE 3 Tigasin Builders Company began its construction activities in 2017. At the end of its first year's operation, the following projects (and other relevant information) are still uncompleted: Project Contract Billings thru Collections Actual costs Est cost to Price 12/31 thru 12/31 thru 12/31 Complete, 12/31 Angeles City 15,000,000 10,000,000 9,000,000 12,400,000 3,100,000 Palo City 17,500,000 5,500,000 5,250,000 3,390,000 13,560,000 Tigasin Builders will use the cost-to-cost percentage of completion in accounting for the Angeles City project, while the cost recovery method will be used for the Palo City project. 1. Compute the Construction Revenue to be recognized by Tigasin Builders for the Angeles City project in 2017. 2. Determine how (1) the Angeles City Project and (2) the Palo City Project will be shown on the year-end balance sheet. CASE 4 On January 1, 2018, an entity granted a franchise to a franchisee. The franchise agreement required the franchisee to pay a nonrefundable upfront fee in the amount of P400,000 and on-going payment of royalties equivalent to 5% of the sales of the franchisee. The franchisee paid the nonrefundable upfront fee on January 1, 2018. In relation to the nonrefundable upfront fee, the franchise agreement required the entity to render the following performance obligations: To construct the franchisee's stall with stand-alone selling price of P200,000. To deliver 10,000 units of raw materials to the franchisee with stand-alone selling price of P250,000. To allow the franchisee to use the entity tradename for a period of 10 years starting January 1, 2018 with stand-alone selling price of P50,000. On June 30, 2018, the entity completed the construction of the franchisee's stall. On December 31, 2018, the entity was able to deliver 3,000 units of raw materials to the franchisee. For the year ended December 31, 2018, the franchisee reported sales revenue amounting to P100,000. The entity had determined that the performance obligations are separate and distinct from one another. 1. What is the amount of nonrefundable upfront fee to be allocated to the construction of the franchisee's stall? 2. What is the amount of revenue to be recognized in relation to the use of delivery of raw materials for the year ended December 31, 2018