On January 1, 2021, ABC Company accepted a long-term construction contract to construct a building with an initial contract price of P100,000,000. The outcome of the construction project can be estimated reliably. During 2023, an increase in the contract price due to change in project design was agreed upon. Cost data are provided below: Cumulative costs incurred as of the end of the year Realized gross profit (loss) for the year Percentage completion as of the end of the year 12/31/2021 12/31/2022 12/31/2023 P10,000,000 ? P108,000,000 ? P350,000 (P1,600,000) 60% 100% 12.5%

On January 1, 2021, ABC Company accepted a long-term construction contract to construct a building with an initial contract price of P100,000,000. The outcome of the construction project can be estimated reliably. During 2023, an increase in the contract price due to change in project design was agreed upon. Cost data are provided below: Cumulative costs incurred as of the end of the year Realized gross profit (loss) for the year Percentage completion as of the end of the year 12/31/2021 12/31/2022 12/31/2023 P10,000,000 ? P108,000,000 ? P350,000 (P1,600,000) 60% 100% 12.5%

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 26E

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